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'Brand X' Ruling Could Spur Telco Deregulation: Page 2 of 3

Indeed, some of the larger telcos had even appeared before the Supreme Court to support the FCC's side of the Brand X case. In a prepared statement, Verizon executive vice president of public affairs, policy and communications Tom Tauke said that the Brand X ruling "confirms the FCC's authority" to classify broadband services.

The commission, Tauke's statement continued, "should update its rules to ensure that all broadband services, including those offered by Verizon and other telephone companies, are not subject to old policies that ignore consumer needs in this changing marketplace. To provide consumers the full benefits of new technology and competition, the FCC and Congress should act promptly to finish the job."

SBC, the nation's other leading telco, opined similarly in a prepared statement from Forrest Miller, SBC group president, who said:

"We're pleased the court upheld the FCC's light regulatory touch on cable broadband service. We look forward to working with chairman [Kevin] Martin and the entire Commission to move forward at full tilt with its nearly four-year-old proceeding to provide the same flexibility to the broadband service of phone companies."

However, the FCC and the phone companies may have their deregulatory party interrupted by Congress, whose deliberations about telecom reform have picked up steam in the last month. A joint statement issued Monday by Senate commerce committee leaders Ted Stevens, R-Alaska, and Daniel Inouye, D-Hawaii, hinted that Congress may usurp any further FCC moves by acting to change the existing telecom regulatory structures, some of which have been in place since the FCC's creation in 1934.