The request, which FCC Chairman Michael Powell announced Monday, was hailed by some industry groups and slammed by some consumer watchdog organizations, who had hoped that an earlier appeals court decision would clear the way for more robust competition and increased choice for consumers.
If the ruling is overturned and the FCC is allowed to lift regulations on broadband providers, third-party ISPs such as America Online and EarthLink (Nasdaq: ELNK) could find themselves shut out of many cable markets where they don't already have access agreements in place.
Powell, however, said he believes that consumers stand to win if the appeal succeeds since it will free broadband companies from unnecessary and cumbersome regulations dating from the early days of the telephone.