FCC Demands That AT&T Explain Itself over Threats to Stop Gigabit Rollout Due to Net Neutrality

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Exterminator

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Oct 23, 2012
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Net neutrality is the hot topic of these past few months, and as much as activists have tried to sway the decision in favor of protecting the open Internet, lobbying groups have tried to convince the FCC that they’ll behave and that net neutrality is in no way in danger.

Of course, not even US president Barack Obama is buying these lines and has given the FCC a play-by-play of how things need to be handled and even told the Commission that reclassifying Internet providers under Title II, turning them into common carriers and the Internet into an utility is the way to go.

As if to prove things right, AT&T tried to flex its muscles while throwing a tantrum like a three-year-old by threatening to halt the gigabit fiber rollout due to net neutrality.

The FCC is having none of that and has promptly sent a letter to AT&T, asking for an explanation on why it thinks that it will lose money if it expands the fiber broadband network.
A massive hissy fit
As mentioned, the giant telco said earlier this week, following the statement the White House published regarding Net neutrality, that it wanted to halt its plans to expand the gigabit Internet network across the United States, until the FCC straightened out the Net neutrality policy, which basically translates into doing what the AT&T and other telcos have been pushing for.

“We think it’s prudent to just pause, make sure we have line of sight and understand to what this p-process will look like,” said Randall Stephenson, AT&T CEO.

The company said that it intended to continue the expansion, should it be allowed to acquire the satellite TV provider that it’s been after, DirecTV.

The FCC is not convinced of the arguments the AT&T has, saying that it could be losing money from the wider rollout of its gigabit fiber due to Net neutrality rules. The commission has made it pretty clear that it wants to check the company’s math in this regard.

The FCC wants information on how many subscribers the broadband business was planning to add to the gigabit network, and just how many will now be affected by the decision to stop the rollout. The watchdog also wants a geographic breakdown of the areas where expansion is to be halted.

The general tone of the letter indicates that the FCC is not joking around and that it is none too pleased with the way things are going.

What AT&T is trying to do here is to flex its muscles and to get the FCC a taste of how telcos could act if Net neutrality rules pass. Chances are that the company’s math won’t hold, however, especially with the prices they’ve been practicing for the lousy speeds they call “broadband.”
 
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