MediaOne Group, Inc. v. County of Henrico, Virginia, 97 F.Supp.
2d 712 (E.D. Va 2000). Plaintiffs:
County of Henrico Defenders:
MediaOne Group Inc. Summary
On May 10, 2000, the district court for the Eastern District of Virginia
struck down Henrico County, Virginia's attempt to impose forced access
requirement on the transfer from MediaOne to AT&T. In so doing, the
court rested its holding on the fact that the provision of Internet access
service over a cable system by a cable operator is a "cable service"
under the definitions of the Cable Act, and thus the imposition of a forced
access requirement violated Section 621(c) of the Cable Act, 47 U.S.C.
§ 541(c).
The disagreement happened
when cable
operators went to upgrade their conduit as the major high speed Internet
link for their subscribers, but local government asserted they had the
right to authorize cable franchise based on the Cable Act. The District
Court of Eastern Virginia ruled that the Henrico County Board of Supervisors
exceeded its authority under state law and violated federal law on cable
services when it adopted an ordinance last December forcing AT&T to
allow ISPs to access its cable platform.
Federal
law has precluded local and state authorities from imposing common carrier
regulations, such as so-called "open access" or "forced
access" requirements on cable system. From the standpoint of the
local authority and ISPs, they think cable providers are gaining too much
power as an Internet gatekeeper. From their viewpoint, in order to provide
local customers more options and avoid monopoly power, cable operators
should open their network for multiple ISPs to connect. Although AT&T
has been sharing its system with several unaffiliated ISPs, it still considers
that forced access will deter the competition of cable companies and will
be found to be illegal.
Court
Decision: AT&T wins Henrico cable access ruling.
AT&T v. City of Portland, U.S. Court of Appeals,
9th Circuit, Appeal No. 99-35609. Plaintiffs:
AT&T/TCI Defendants:
City of Portland/County of Multnomah Intervenors:
US West/Oregon ISP/OGC Telecom Summary
The Portland case was started by AT&T's intention to transfer licenses
from its affiliate company TCI and the City of Portland mandated that AT&T
give other ISPs access to the cable network.
As one of the largest
national cable operators, TCI, had previously entered into franchise agreements
permitting it to provide cable service. After TCI merged with AT&T,
the City of Portland and the County of Multnomah refused to grant AT&T's
request for change of control. The two local authorities alleged that
they had the right to impose open access conditions on cable and refused
to grant the franchise before AT&T fully opened its cable network
access to other ISPs. AT&T lost in the District Court because the
judge agreed with the City of Portland that it had the authority under
the 1984 Cable Act to execute open access condition. But, the 9th Court
of Appeals issued its opinion reversing the District Court in the previous
ruling. The appeals court concluded that Portland could not condition
its approval of the transfer of the TCI cable franchise upon AT&T's
granting of open access to its broadband cable facilities to competing
ISPs.
In particular, AT&T/TCI
alleged that Federal statutes preempt the locally mandated open access
requirement. Also, AT&T and TCI alleged that the open access mandate
violates the contracts clause, commerce clause, freedom of speech, the
Oregon Constitution and the franchise agreements.
Judge Panner in the trial court granted no federal preemption, ruled that
neither the City nor the County had violated the first amendment, the
contract clause, the commerce clause, the Oregon Constitution, or the
franchise agreements. When it came to the Appeal court, the court held
the ruling and wrote its own opinion as " We hold that subsection
541(b)(3) prohibits a franchising authority from regulating cable broadband
Internet access, because the transmission of Internet service to subscribers
over cable broadband facilities is a telecommunications service under
the Communications Act. Therefore, Portland may not condition the transfer
of the cable franchise on nondiscriminatory access to AT&T's cable
broadband network. We need not reach AT&T's other statutory and constitutional
arguments." After that, the Appeals court reversed the decision of
District Court. Court decision:
The Court of Appeals for the Ninth Circuit issued its opinion reversing
the District Court.
Broward County v. Comcast Case, U.S. District Court, S.D.
Florida, Miami Division, No. 99-6934-CIV Case consolidated with No. 99-6945-CIV Plaintiffs:
Broward County Defendants:
Comcast Cablevision of Broward County, Inc., Advocate Communications,
Inc., d/b/a Advanced Cable Communications, MediaOne of Greater
Florida, Inc, TCI TKR of South Florida, Inc. Summary:
Broward county adopted an ordinance on July 13,1999 that required cable
companies in Broward County to provide any requesting ISPs access to their
broadband cable Internet access facilities, unbundled from the provision
of content, on rates, terms and conditions that are at least as favorable
as those on which they provide such access to itself. The cable companies
that hold cable TV franchises in the covered area promptly filed complaints
in the U.S. District Court seeking to have the ordinance overturned.
On November 8, 2000,
the U.S. District Court ruled in favor of the cable operators. It held
that the Internet access and content services provided by cable operators
are entitled to the same level of protection as a newspaper under the
First Amendment. Moreover, the court held that the ordinance in question
constitutes content based regulation, and hence, the strict scrutiny test
applies. Broward County argued that it regulated the economic activity
of providing broadband transport, not the content which the cable operators
disseminated over those transport facilities. The Judge reasoned both
that the transmission and content are inseparable, and that the First
Amendment offers protection to both transmission and content. He also
wrote that cable operators control no bottleneck monopoly over access
to the Internet because there is an abundance of different sources of
content on the Internet.
Court
decision:
On April 23, 2001, Broward County settled its open access suit with AT&T.
The county agreed to drop the appeal and rescind the ordinance, and the
cable operators agreed to abandon attempts to collect attorney's fees.
GTE v. TCI, Comcast, At Home
Plaintiffs:
GTE Internetworking Inc. and GTE Intelligent Network Services Inc. Defendants:
Tele-Communications Inc., Comcast, and At Home Corp., Summary:
GTE Internetworking Inc. filed a lawsuit in U.S. District Court on October
25,1999 against the cable company TCI, Comcast, and ISP At Home alleging
that bundling broadband data transport service with ISP service violates
the Sherman Antitrust Act. GTE's complaint rests on Section 1 of the Sherman
Antitrust Act. It alleges three counts of illegal tying, and two counts
of refusals to deal. The complaint seeks damages and a court declaration
that (a) the defendants may not require customers to purchase the At Home
ISP service in order to obtain high-speed data transport, i.e., customers
may obtain high-speed data transport without also purchasing ISP service
from At Home; (b) the exclusive contract between the Cable Company Defendants
and At Home is unlawful; and (c) the Cable Company Defendants may not
agree to refuse to deal with non-affiliated ISPs with respect to the provision
of high-speed data transport to residential customers".