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FCC Reverses Merger Condition Requiring Charter to Overbuild to Compete

Phillip Dampier April 3, 2017 Charter Spectrum, Competition, Public Policy & Gov't 2 Comments

Reuters is reporting the Republican-dominated Federal Communications Commission has reversed a pro-consumer mandate requiring Charter to overbuild at least one million homes to offer competitive internet service. The requirement was imposed on Charter Communications as part of the FCC’s approval of its merger deal with Time Warner Cable and Bright House Networks in 2016.

The overbuild requirement would have forced Charter to directly compete with incumbent phone and/or cable operators in areas where only one provider now offers service.

Pai

The petition to repeal the condition was personally circulated by FCC chairman Ajit Pai who didn’t feel the FCC should mandate cable companies to compete as part of a merger approval.

Former FCC chairman Thomas Wheeler pushed for the requirement, noting that Charter’s merger offered an opportunity to incorporate pro-consumer deal conditions like increased competition. The overbuild requirement would have required Charter to expand its cable service in areas where only telephone company DSL was available or give an opportunity for consumers to have a choice of cable operators. Pai’s effort gives Charter a big break, now only requiring the company to offer high-speed internet as a de facto monopoly to two million new customers where no internet service currently exists.

It also represents a gift to small independent cable operators and their lobbying arm, the American Cable Association, who feared the overbuild requirement would bring Charter into their service areas as an unwelcome competitor that would have “devastating effects on the smaller broadband providers Charter will overbuild” and could put them out of business.

The Competitive Enterprise Institute has its own pending filing asking the FCC to eliminate other deal conditions, including a prohibition on data caps Charter must adhere to for up to seven years.







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  • Chris: Im in Tri-Cities, WA and just caught wind of the upgrade. Charter said they'd be doing this at some point over the last year and it finally happened f...
  • JayS: It will be interesting to see how companies in Utility-Monopoly like markets (Cable Tv, Electric, Wired Internet) treat the "tax rate windfall". Then...
  • Adam Bryant: Please give us any updates you have on this! I received an approval letter on 11/29/2017 12:16 PM sayign they would be sending a check within 10 busin...
  • jgbbmodelrailroad: New York State has a weird law that means Internet Service Providers pay they same taxes on infrastructure regardless of how many customers it serves,...
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  • Phillip Dampier: Charter has not fully converted former Time Warner Cable customers to its legacy Charter website and support platform, which is why TWC customers ente...
  • Phillip Dampier: Folks, I should have been more clear that this list is for approved CUSTOMER-OWNED modems for Charter/Spectrum customers. It does not include modems s...
  • Curious George: use this list too the ubee is on this list under Modems offered by Spectrum https://www.timewarnercable.com/en/support/internet/topics/modems.html#/...
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  • EJ: Yep, yep they have essentially created another way to profit off of their shotty lower up time network. Give the guy that thought of this a big fat ra...

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