Competition/Antitrust

In the past few weeks, the Biden Administration has finally moved forward with nominations to the Federal Trade Commission and the Federal Communications Commission. As the agencies move forward, fully staffed at last, we hope they will both recognize the role they can play in promoting net neutrality – meaning, in preventing ISPs from taking advantage of their effective gatekeeping roles to favor some services over others. Most people think of net neutrality as the province of the FCC, at least at the federal level.

There was once a time when the words “fixed line” turned investors cold — as the extraordinary growth of wireless telecoms and mobile data made cabling seem antiquated. Yet, in the age of full-fibre broadband, those tables have turned.  Investors are backing a new generation of smaller, alternative cabled networks — dubbed “alt-nets” — forcing larger incumbents to increase their investment in broadband.

Atlantic Broadband, the US’s eighth-largest cable operator, announced a major growth plan that will extend fiber services into communities not previously served by the company. Atlantic Broadband will invest $82 million in its current fiscal year to extend its reach to nearly 70,000 additional homes and businesses, providing Gig internet, home WiFi, Internet Protocol TV (IPTV) and voice services via advanced Fiber-to-the-Home (FTTH) technology.

Ahead of the December 1 vote in the Senate Commerce Committee, Federal Communications Commission Chair Jessica Rosenworcel, who’s been re-nominated to another term as commissioner, and Federal Trade Commission nominee Alvaro Bedoya answered questions from lawmakers on topics ranging from broadband and spectrum use to social media use and antitrust. Rosenworcel told senators point-blank that she had no plans to regulate broadband rates — a concern prompted after she previously seemed open to the option as a way to increase broadband access.

The central US appears to have caught the eye of equity investors, with Bluepeak becoming the latest privately-funded fiber company to plot a major expansion there. Right now, Bluepeak offers service to around 60,000 subscribers in South Dakota and parts of western Minnesota under the name Vast Broadband. Planned investments include a $140 million build in Oklahoma to bring fiber to more than 140,000 homes and businesses across the state.

Federal Communications Commission Chairwoman Jessica Rosenworcel announced that the items below are tentatively on the agenda for the December Open Commission Meeting scheduled for Tuesday, December 14, 2021:

The Federal Communications Commission has voted to approve—with strong consumer protection conditions—the transfer of control of TracFone Wireless from América Móvil to Verizon Communications. After rigorous review, the FCC found that the transaction, as modified by Verizon’s enforceable commitments, will make Verizon and TracFone stronger providers of prepaid and Lifeline services. Given the communities that TracFone primarily serves within the US, the FCC adopted a number of binding conditions to address potential harms and to ensure the transaction will be in the public interest.

US cable operators are increasingly threatened by the vast sums of money being plowed into fiber overbuilders, but cable industry legend John Malone believes that multiple-system operators (MSOs) such as Charter Communications are well-prepared to handle the hazards of more capable competition. Malone, whose Liberty Broadband unit holds 26 percent of Charter and owns Alaska's GCI, remains upbeat about Charter's prospects in the face of new and emerging competition from fiber overbuilders. "I believe they can defend their territory quite effectively," Malone said.

Towns in Maine are considering municipal-run networks that would reach residents who lack broadband access. At a recent Leeds (ME) town meeting, residents debated the creation of a town-run broadband network paid for through a $2.2 million bond. The Leeds broadband proposal sought a slice of the federal funds that have been flowing into the state since last year by leveraging a commitment from voters to borrow money to extend high-speed fiber to households who can’t get it, or that were unwilling to pay the thousands of dollars Spectrum, the only local provider, would charge them.

As millions more federal dollars flow to Mississippi for expanding broadband internet access, large cable and telecom companies and rural electric cooperatives are already sparring over the money. During two days of state Senate Energy Committee hearings, officials from both sides laid out their cases for how they could best provide more rural high-speed internet access.