Coalition targets Verizon, ATT broadband 'special access'
June 24, 2009
A new coalition of organizations and broadband companies announced Monday that it was formed to oppose the market control exerted by AT&T and Verizon over high-capacity broadband services, also known as special access.
Called NoChokePoints, the group said end users and broadband providers require special access to broadband services at a reasonable price to spur the investment and innovation the U.S. economy needs.
Maura Corbett, spokeswoman for the NoChokePoints coalition, said "excessive pricing and other market abuses" by these companies has long been an issue of concern at the Federal Communications Commission (FCC).
"Despite ample evidence of excessive pricing, the Commission inexplicably has yet to take any action," Corbett said.
Verizon and AT&T exclusive control of the broadband lines costs businesses and consumers more than $10 billion annually and generates a profit margin of more than 100 percent for the controlling phone companies, according to their own data provided to the FCC, the coalition said.
NoChokePoints said the special access market is broken and the market failure must be corrected.
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