Policies Shake Up American Telecom Industry

Published Date : Feb 06, 2015

America’s biggest telecom service provider Big Telecom has been facing a tough time in the country. Currently, Big Telecom has three big issues at hand. First big hurdle is the proposed merger between TWC and Comcast; second is that it is under massive scrutiny from regulators, consumer rights advocates, and others; and three long-drawn debates about high-speed broadband being a public utility or no. There are many who are of the opinion that the merger would lead to a monopoly on consumer broadband in times when the market does not have any worthy competition. 

To worsen the problem further FCC, encouraged by the comments from President Barack Obama hinted towards removing laws that hinder municipalities from creating their own broadband networks. If this law goes away it only means that the publicly supported competitors would find a way in the local markets.

The third issue of a debate about high-speed broadband service being a public utility or not is tending towards a yes which is essentially taken by all stakeholders, however companies fear a strict regulatory oversight as per Title II of Telecommunications Act. It was only yesterday that FCC declared that the new recommended rules categorize broadband services as public utility, which would mean that there is a ban on paid traffic prioritization and upholding of Net Neutrality principles. However, none of these negative speculations are true for now. In the light of recent events it cannot be denied that the telecom industry’s future does look slightly dim if the situation continues.