Comcast CEO Says Small Business Market Next Big Cable-Telco Competition Arena
MIAMI BEACH -- Comcast CEO Brian Roberts told state regulators consistent, even-handed regulatory policies are the key to expansion of facilities-based cable competition into the small-business market. Roberts, speaking at the NARUC annual convention here, said regulators also need to address the remaining barriers to competition.
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“If you act consistently, apply a light procompetitive regulatory touch, give us a fair hearing and fair market entry conditions, we'll come in and take our chances,” he said. His company sees its biggest landline business opportunity serving small- to medium-sized businesses, Roberts said: “There’s not a lot of competition for them. We want to extend the service innovations we offer residential customers to include the small-business market as well. We are local players who understand the needs of local businesses.” Comcast is dealing with its lack of wireless service, he said: “We purchased spectrum in the recent FCC auctions for future wireless services to our customers.”
“The cable industry is the most important source of facilities-based competition,” Roberts said. Comcast “revolutionized the way people watch TV” through new ideas such as on-demand video, he said: “We're bringing new ideas to the phone market, too, like our Triple Play” of bundled phone, TV and Internet service. Since 1996 Comcast has spent $110 billion to upgrade its network nationwide, “and without any universal service fund subsidies,” he said.
Regulators should address remaining bars to competition, Roberts said. Major barriers, he said, include the rural competition exemption shielding some incumbents, incumbents’ slow porting of phone numbers, a de facto monopoly over transiting traffic in most markets and universal service contribution rules that disadvantage new entrants. “The next couple of years will tell if facilities-based telecom competition is to flourish,” he said. The path to effective competition won’t always be smooth, Roberts said: “Service is our highest priority, but we're growing fast so a few hiccups are inevitable. Don’t let debate over our mistakes become a barrier to entry. We ask your understanding as we iron out the wrinkles.”
In other business, the NARUC board unanimously adopted all 3 telecom policy resolutions proposed by the Telecom and Consumer Affairs Committees. The Telecom Committee resolutions encourage states to adopt competitively neutral BPL deployment policies and support requests for federal appropriations for 911 enhancement grants provided for in a 2004 law, and encourage states to adopt BPL policies that promote deployment while protecting electric systems and consumer and ratepayer interests.
The resolution from Consumer Affairs urges state commissions to collaborate with carriers getting universal service subsidies to ensure they support Lifeline/LinkUp outreach and education programs, put Lifeline information on their websites, update their Lifeline customer service phone scripts and encourage other public utilities to consider including an annual bill insert advertising availability of Lifeline phone service. This last call upset some state members of the board, concerned the resolution would be read as a mandate. But after a wording change to make clear the resolution meant strictly voluntary participation, the resolution passed unanimously.