By Stephen Phillips

Comcast Corp yesterday branded telecommunications carrier GTE Corp’s lawsuit alleging that cable operators are illegally monopolizing broadband internet access, a blatant attempt to reduce internet competition. In a stinging riposte the Philadelphia-based cable operator accused GTE of hijacking the US federal antitrust machinery to delay roll out of high-speed cable internet access which competes with its digital subscriber line (DSL) services.

Comcast’s charges were delivered in an answer filed with the United States District Court for the Western District of Pennsylvania where GTE brought its antitrust lawsuit against Comcast and fellow cable operator AT&T Corp in October. GTE, which offers consumer internet access through GTE.net, is suing the companies, charging that requiring customers of their high- speed cable internet networks to use Excite@Home as their internet service provider violates US antitrust laws and arrests competition. GTE, America Online, and other ISPs are fighting an ongoing campaign to convince US Congress or federal regulators to compel cable operators to open up their networks across the US to ISPs. GTE, soon to be acquired by Bell Atlantic Corp in a deal which will create the largest local phone company in the US, boasts more than 23 million customers for its local phone services in 28 US states.

GTE spokesperson Briana Gowning said that Comcast’s charges that it was seeking to stifle cable’s roll out of internet access were ludicrous. She told ComputerWire that the Irving, Texas- based company was simply trying to put cable companies on the same footing as US telephone carriers, which are required by law to allow customers to choose an ISP. She added that GTE had agreements with 200 ISPs for its DSL services.

However Joe Waz, Comcast’s vice president of external affairs told ComputerWire that the regulatory climate GTE is seeking would scare off investors in cable operators. Regulation always creates uncertainty, and doubts among investors [would harm cable operators’ ability] to raise funds to extend [networks]. He said the status-quo enabled cable operators to compete with DSL services from telecommunications carriers in the internet-access market and that this had benefited consumers. Waz said that competition from cable operators had driven DSL prices down by 40%.

He added that Comcast was open to striking private deals with ISPs to offer access to its cable networks but he declined to reveal whether Comcast was in talks with any prospective ISP partners. Last week number-one cable operator AT&T announced a provisional agreement with Atlanta, Georgia-based ISP MindSpring Enterprises Inc.

Meanwhile, AT&T stood behind Comcast’s charges yesterday. It is preposterous and ironic for a monopoly like GTE to use the antitrust laws to block emerging competition, said Jim Cicconi, the cable and telecommunications company’s general counsel, in a statement. If the antitrust laws condemn anything, it’s GTE’s dismal record of closed markets, captive customers, high prices and poor service, he added.

Lawyers representing the parties will stage a so-called status meeting next Tuesday (December 21) to determine the timetable for proceedings.