Cable Seeks Fewer, Not More NJ Rules
Cable operators told a New Jersey regulator their "entertainment services" shouldn’t face stricter service-quality rules than telephone -- especially since competitive over-the-top providers are unregulated. At a New Jersey Board of Public Utilities virtual hearing Wednesday, Altice, Comcast and the New Jersey Cable Telecommunications Association (NJCTA) ticked off a laundry list of legal and practical objections to BPU’s proposal to readopt the state’s Administrative Code Title 14 Chapter 18 rules for cable TV with substantial changes, including new required metrics and reports and tougher enforcement.
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Board members unanimously supported considering additional cable service-quality rules in August (see 2108180051). Written comments are due Dec. 3 (see 2110040029).
NJCTA members are “concerned that the current proposal represents significant expansion of oversight regulatory reporting and other requirements at a time when cable operators face ever-intensifying competition, including from a seemingly endless array of unregulated video providers,” said counsel Stan Barrett of Scarinci Hollenbeck. “The NJCTA does not understand why cable operators, who provide entertainment services, should be subject to stricter reporting requirements than telephone companies, who offer their customers ... Lifeline service and access to E-911.” Telcos don’t face the same proposed quarterly reporting requirement or other new metrics under consideration, he said.
Proposed enforcement rules inappropriately create “automatic findings of guilt and automatic assessments of maximum penalties for either unresponsiveness or insufficient responsiveness by cable operators,” said Barrett. By not giving cablers an opportunity to be heard, denying them due process, the proposal violates the Cable Act, Administrative Procedure Act and state constitution, he said.
“Seismic shifts in consumer preference” toward OTT providers like Netflix and HBO Max “call for a reduction in video regulation as consumers have a myriad of options,” said Altice Senior Director-Government Affairs Marilyn Davis. The rules instead would increase red tape, “further skewering the competitive imbalance,” she said. The video market evolved dramatically since state cable rules were last reauthorized, said Davis.
Proposed service-quality rules “ignore modern business realities,” expanding reporting without a commensurate reduction in existing requirements that are outdated or unnecessary, said Comcast Senior Director-Regulatory Affairs Liz Murray. A proposal to delete an “effective competition” section from rules “denies Comcast relief that’s already been received by our competitors.” The proposal explains the section is obsolete due to the FCC declaring the market no longer needs regulation, “but eliminating regulatory relief” is “the inverse of what should follow such a finding.” The board should instead make relief “automatic and universal.” Don’t regulate local office closures since Xfinity store traffic is declining, but customer satisfaction is higher than ever, and because such rules exceed state and federal standards, she said.
Verizon faces “dynamic” New Jersey cable competition, “which demands reduction and streamlining of existing regulations,” said Vice President-State Regulatory Affairs Ava-Marie Madeam.
The New Jersey Division of Rate Counsel supports requiring “much-needed new cable service quality metrics and standards,” said staff attorney Maria Novas-Ruiz. She suggested some changes, including more time for public comment.