Competition/Antitrust

The Florida Legislature recently passed a bill that brings poles under state jurisdiction for any electric cooperative that elects to enter the broadband business.

For AT&T, the fastest home internet needs wires. The telecommunications giant is expanding its network of fiber-optic cables to deliver fast internet speeds for customers, including those in places where it doesn’t already provide broadband. The plan doesn’t come cheap.

Billions of dollars are about to flow from the Broadband Equity Access & Deployment (BEAD) Program, which is driving all kinds of interest in delivering fiber broadband to unserved and underserved areas of the US. In addition, the wireless carriers, T-Mobile and Verizon, are deploying fixed wireless access (FWA) in many underserved areas where people have never been happy with their choices of low-speed cable or DSL. Comcast CEO Brian Roberts said, “I don't think we competed as well for the lower end of the market.

Senator Richard Blumenthal (D-CT) introduced the Junk Fee Prevention Act  (S.916), which takes aim at eliminating fees that are not advertised for a product but that get added on after a customer buys a product or service. These fees were attacked this year by President Biden in the State of the Union Address. Telecommunications companies, particularly cable companies, are among the worst in having hidden junk fees that are not included in advertising but are added to a customer’s first bill.

In a period of only nine days—April 25 to May 3, 2023—the the Federal Trade Commission (FTC) announced initiatives to look at unfair and deceptive acts involving AI and proposed banning Meta Platforms from targeting young users. These come on top of two years of antitrust aggressiveness and consumer protection assertiveness. But both actions beg the question, “Are the tools strong enough for the task?” Both the AI and Meta activities are indications of the limitations that FTC Chair Lina Khan and the agency face as a result of being tied to industrial-era statutes and procedures.

While CEOs of the companies leading the AI wave met at the White House on May 4, the leaders of the Biden administration's antitrust campaign against tech giants were also gathering for a stock-taking a few blocks away. In each arena, the industry has so far lapped its would-be regulators — but at least with AI, the race is still young.

Consumers increasingly are ditching traditional broadband plans for more-affordable 5G fixed-wireless internet service. In response, cable companies say they may be losing some battles, but in the end they’ll win the war—and that customers who have switched will return.

Amazon’s satellite-powered internet business is closer to getting off the ground. The company recently unveiled the antennas that future subscribers of its Project Kuiper internet service would need to communicate with the satellites it plans to start mass producing in 2023.

In a Fast-Track SWIFT challenge brought by Comcast, the National Advertising Division (NAD) of BBB National Programs recommended that T-Mobile discontinue the “Don’t you worry ‘bout speed” claim in reference to T-Mobile’s Home Internet (T-HINT) service. NAD determined that T-Mobile’s unqualified claim conveys the message that internet speeds are sufficient to provide worry-free internet service that will allow users to perform nearly all typical activities on the internet, including intensive uses like gaming or streaming on multiple devices at any time of day.

How do big broadband providers get away with charging the same prices in urban areas for both slow and fast broadband? An Associated Press article found that one customer was paying the same price for 1 Mbps DSL from AT&T as other city residents were paying for a fiber connection. It would be easy to justify charging the same price for both technologies if AT&T was in the process of converting everybody in New Orleans to fiber, but this is not the case.