Home » Charter Spectrum »Competition »Public Policy & Gov't » Currently Reading:

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.







Search This Site:

Contributions:

Recent Comments:

  • LG: Let me guess.. it comes with a 200Gb bandwidth cap too, right? This month, for the first time, I actually reached my 1 Tb limit with Comcast. It's m...
  • Kerry: This makes four channels that have been removed in the last 60 days. We are still paying the same ....
  • Kerry: Should the F. C. C. step in and stop what seems to be consumer fraud ....
  • Kerry: Very upset with N. B.C. For dropping the chiller channel . I subscribed to tier 1 so I could get all of the channels listed in tier one. It is the...
  • Sam: Hello, I'm Thomas Rutledge CEO Of Charter Cable. My Shareholders in NYC-NJ are on strike. I'm made a whopping $98.5 million dollars. My Union IBEW 3 S...
  • Anthony: Perfect timing with this video. On the day that Canada upholds net neutrality, we get a nice reminder of how horrible the outlook is for the Internet...
  • Tony: Time Warner/ Spectrum would shut off my service , kept billing me ,, I called to ask why and they said they wouldn't stop billing me the full monthly ...
  • John: CSPAN is paid for by cable and sat. operators, it's their organization, and they pay dues per customer....
  • Sandy: I have been with Dish Network entirely too long to keep going through this crap almost every 6 months. I'm not getting quality service like this. If I...
  • Chuck: Hello all we are going through the same type of problems. Ever since Frontier took over Verizon we've had to call every month to get bill changed. Has...
  • Roger: If I'm not mistaken, they don't pay for C-SPAN and may not pay for the religious and shopping channels. If they do, it is a nominal fee. In additi...
  • Limboaz: It's a shame that Google has thrown in the towel with their fiber network expansion, and it's also a shame that Telco's like Centurylink are just so p...

Your Account: