IVI Won't Back Down Despite FCC Ruling - Company Business and Marketing

The FCC's denial of Internet Ventures Inc.'s petition asking for leased access protection for its broadband Internet access service won't stop IVI from looking for other ways to use cable operators' fat pipes, according to the company's chairman Don Janke.

Still, the Feb. 18 ruling was clearly a setback for IVI, which has been trying to secure carriage on cable operator's lineups using leased access rules. IVI wanted the commission to give it and other small ISPs the ability to lease access on operators' lineups as stipulated as part of the 1984 Cable Act. The five commissioners balked at the request, but did leave room for future petitions if an ISP eschews delivering text and e-mail services, Janke says.

The FCC's decision didn't surprise many people watching the issue, including Janke, who characterized the fight as a "David and Goliath story." But the commission has been steadfast in its reluctance to regulate access to the Internet preferring to let the marketplace mature more before any regulations are put in place.

"There's open access, there's leased access and now there will be no access," Janke said. "The FCC's regulation today will deprive thousands of ISPs and their subscribers of the benefits of the broadband revolution."

IVI had argued because it provided programming to customers, it should be able to lease access from cable operators. But the FCC ruled that Internet-access programming doesn't constitute programming as defined by the law.

"They took a very antiquated look at the issue using laws that are over 15 years old," Janke says. "What's too bad."

IVI isn't giving up on its fight to get access on cable broadband networks. But Janke said the company is pressing onward in other high-speed areas including DSL and utility fiber lines. For instance, IVI has begun offering residential broadband Internet access services over the Ashland Fiber Network, a municipal overbuild in Ashland, Ore. It's also cut a deal with New Age Networks, a DSL provider in the Pacific Northwest. IVI also provides Internet access for about 30,000 subs over conventional phone lines and 1,700 subscribers over cable modems.

Meanwhile, the Minnesota Public Utilities Commission last week dropped its investigation of open access deciding it has more pressing issues to confront. And, MSOs in the state hailed the decision. But the Minnesota Department of Commerce blasted the move and vowed to ask the commission to reconsider.

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