AT&T threatens to delay fiber-optic network over Obama’s suggested regulations; FCC demands answers

AT&T threatens to delay fiber-optic network over Obama’s suggested regulations; FCC demands answers

AT&T and other Internet service providers are opposed to efforts that would prevent them from providing "Internet fast lanes" for a price.

AT&T’s announcement that it would “pause” its plans to roll out high-speed fiber-optic lines throughout the country is getting some attention from the Federal Communications Commission, who want to know the reason behind the delay.

The FCC sent a letter to AT&T requesting more information about the fiber deployment plans, including the current rollout and a breakdown of the technology used, as well as the number of households it could reach, according to a CNET report.

The letter comes shortly after President Obama came out in support of tougher regulations on broadband services, which would treat them as utilities. AT&T CEO Randall Stephenson responded to the announcement by saying it would delay its plan to deploy high-speed fiber-optic lines nationwide, saying that the company won’t invest in a huge network without fully understanding these new rules Obama wants to impose.

The FCC is looking at options, including placing broadband services under “Title II” regulations, which allow the government to enforce “Net neutrality,” a major movement to force Internet service providers to handle all Internet traffic equally rather than providing “fast lanes” to some and slower access to others who aren’t willing to pony up.

AT&T and other ISPs have assailed the proposed regulations as harmful to innovation and capital investment. AT&T is now threatening to even delay creating the network it had planned over the proposed regulations which have not yet been adopted.

AT&T is trying to get approval from the FCC on its $48.5 billion deal for DirecTV, but the approval process has been put on hold for a separate matter on consumer protection. The company says it will work with the FCC on that.

AT&T’s original plans called for the deployment of high-speed fiber-optic lines throughout the country capable of speeds of 1 gigabit per second, which it would roll out in 100 cities next year. Stephenson said he would limit the deployment to 2 million new homes that were part of a DirecTV deal. Dubbed “GigaPower,” it is currently available in a handful of cities, including Austin, Texas.

The FCC wants to know more about AT&T’s rollout plans, as well as if its investment in fiber is unprofitable, especially its rollout to 2 million homes. Finally, the FCC wants documents related to the acquisition of DirecTV.

Net neutrality has proved to be a brutal battle in the offices of policy makers and in the court of public opinion. Internet service providers like AT&T and Verizon want to have the power to throttle the speeds of consumers who won’t pay them a premium for Internet “fast lanes,” but open Internet advocates have protested such attempts as restrictive and monopolistic, and have asked the government to get involved and enforce “Net neutrality” regulations.

Specifically, “net neutrality” is the principle that Internet service providers and governments should treat all data on the Internet equally, not discriminating based on the user or the site or the method of communication. The opposite, which Verizon and AT&T favor, would be a more “closed” Internet where certain users receive favorable broadband access.

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