Canadian Government Orders Cable Companies to Open Access to High-Speed Cable Internet Systems.

WASHINGTON--(BUSINESS WIRE)--July 6, 1999--

Canadian Consumers To Benefit From Ruling that Requires

Cable Operators to Give Competitors Access to Cable Networks

The openNET Coalition, a group of more than 70 ISPs fighting for open access to the nation's cable network, today hailed an order from the Canadian Radio and Telecommunications Commission requiring cable companies to open high-speed Internet networks to competition.

"Canadian consumers will benefit from lower prices, better service and conscientious consumer service - all the benefits of competition in high-speed Internet cable access," said Greg Simon, co-director of the openNET Coalition. "Shouldn't Americans enjoy the same benefits of an open, competitive system?"

The CRTC decision, a major victory for open access, takes a more regulatory approach than is being sought by Internet Service Providers here. But the ruling will encourage current efforts in a number of U.S. cities to require AT&T to open its cable system by selling access to competitive ISPs. The Federal Communications Commission has turned a blind eye toward requiring competition, a position that favors AT&T's monopoly ambitions.

AT&T is attempting to rebuild the monopoly it once held in telephone service in high-speed cable Internet access. Last year, the telecommunications giant purchased the nation's second-largest cable company, Tele-Communications Inc., and this year bought the nation's third-largest cable company, MediaOne. As part of these purchases, AT&T must seek the transfer of cable franchises in local communities across the country. Cities reviewing the cable franchise can require AT&T to open its network to competition.

Cities across the country, including Fort Lauderdale/Broward County, Los Angeles, Miami/Dade County, San Francisco, Seattle/King County and Spokane are considering the future of AT&T's local monopoly. So far, only Portland, Oregon, has required AT&T to open its network. AT&T then sued the city and lost in federal court. U.S. District Court Judge Owen Panner ruled that local communities have the authority to require competition in the public interest. AT&T is appealing the decision.

The next action is San Francisco, where the city was scheduled to meet today in executive session to discuss how to require AT&T to open its cable system. San Francisco's Public Utilities Committee last month rejected giving AT&T/TCI a monopoly in their city.

"We applaud Canada's wisdom and pro-consumer approach," Simon said. "We urge American officials to act equally wisely."

The six charter openNET companies are: America Online, Cable & Wireless USA, Inc., MCI WorldCom, Mindspring Enterprises, Inc., Prodigy Communications Corporation and US WEST. Its member companies and associations include: Amberwave Internet LLC, American Digital Online Services, Inc., Basic Communication, Inc., Bertelsmann AG, Bluegrass.net, Caribbean Internet Services Corp., Carolina Online Networks, Inc., Cerbernet Limited, Citicom Communication Services, Collective Intelligence, Inc., Crocker Communications, CyberNet Nationwide (CNNW.Net), CyberRamp Internet Services, CyberZone Internet Services, DigiLink Internet Services, Digital Highway Communications, Inc., Digital Starlight Communications, Inc., dotSTAR Communications L.C., Elastic Networks, EZ Online, Inc., FlashNet Communications, Fiberhood Networks, Inc., Gateway, Gibralter Data Services, Grapevine2, GTE, InLink Business Services, Innova Communications, LLC, Internet America, Information Gateway Services, Information Systems Technology, Inc., Kentucky ISP Association, Lahman Internet Sevices, LLC, LavaNet Internet Services, LLC, Lightning Internet Services, LLC, LTI, MacConnect, Maui Net Inc., MyLink, NEOCOM Microspecialists, Inc., Net Nevada, NetQuick, LLC, Netscape Communications Corporation, Olympia Networking Services, Oregon Internet Service Provider Association, oz.net Internet Services, Pacific Global Communications, LLC, Public Electronic Access to Knowledge Inc. (PEAK), Rocky Mountain Internet, Quik Internet NWA, Quik Internet of Portland, Quik Internet of Tioga County, Pennsylvania, Quik Internet of Wisconsin, Sprint, Sybercom, Inc., TAMB Associates , Inc., TBC Group, Teleport Internet Services, Texas.net, Texas Internet Services Providers Association, Trusted Net, Inc., Verio Inc., Washington Internet Service Providers Association, WebShoppe, LLC, Websnap Internet Corp., and World Wide Internet Services, Inc.