Court: Cable Firms Don’t Have to Lease Web Connections

A federal appeals court has ruled that AT&T Corp. can’t be forced by local communities to lease its high-speed Internet connections to competitors, according to reports.

The 9th U.S. Circuit Court of Appeals said Portland, OR, exceeded its authority by forcing AT&T to give access to rivals of its affiliated Internet service provider, Excite At Home Corp.

The ruling is seen as a setback for Earthlink Inc. and small Internet service providers that have been lobbying local governments nationwide for rules giving them access to cable companies’ fast Internet hook-ups. Yet the court found that the Federal Communications Commission to extend to cable services rules that apply to telephone companies.