Cox, Mediacom Resist Possible FCC Price Regulation of BDS Offerings
Two cable companies objected to possible FCC regulation of their business data services. Cox Communications said direct or indirect regulation of its BDS offerings would "significantly impact" its investment decisions. Ethernet prices are falling sharply and developments such as consumer…
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use of over-the-top BDS were pressing its business plans, said Cox filing posted Tuesday covering a meeting with senior FCC officials, including General Counsel Howard Symons, Wireline Bureau Chief Matt DelNero and Stephanie Weiner, an aide to Chairman Tom Wheeler. "Reject competitive market tests based on overly granular areas such [as] census blocks or specific locations and that required multiple competitors before finding a market competitive." When asked about a possible delay in directly price regulating new BDS entrants, Cox said such regulation should be tied to market power, with "new entrants" defined as providers starting BDS after 1996. Incompas and Verizon had suggested a three-year delay. Mediacom met separately with Symons, commissioner aides, and other staffers to oppose new regulation of competitive BDS offerings, including its "nascent" service. "Mediacom’s BDS prices have been subject to competitive pressure that has forced prices to decline markedly since 2011," said a filing, also in docket 16-143. "There is no record evidence that Mediacom’s rates are unreasonable, or that the company possesses market power. We also argued that adoption of a competitive test that defines a competitive market as those with at least four facilities-based providers is not reasonably tailored to address isolated allegations of excessive rates because it would treat nearly all markets as non-competitive."