AT&T v. City of Portland

AT&T acquired another telecommunications service and was permitted to gain a license as long as they agreed to provide open access to its cable network to all ISPs.  When AT&T refused, the city and county declined to grant them the license.  AT&T sued in district court questioning if the city and county had the power to deny the license, alleging : (1) the locally mandated open access requirement is preempted by federal statutes, (2) the open access mandate violates the contracts clause, (3) the open access mandate violates the commerce clause, (4) the open access mandate violates freedom of speech, (5) the open access mandate violates the Oregon Constitution, and (6) the open access mandate constitutes a breach of the franchise agreements.  AT&T was denied relief. 

Upon appeal in the 9th circuit, the court found the city and county did not have the power to command open access.  The court also found, however, that the Internet access conducted over cable networks had elements of both a telecommunications service as well as an information service, which provided for more uncertainty in the field of Internet communications regulation.

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