Customer complaints about FairPoint increased in Maine, New Hampshire and Vermont after its $1.3 billion sale to Consolidated Communications, which closed in summer 2017, said utility commissions in those states. Maine's Public Utilities Commission Tuesday voted 3-0 to open an investigation into service quality complaints in a rural town, saying the probe could expand to other parts of the state. A week earlier, the Vermont Public Utility Commission launched an investigation into Consolidated service quality. Consolidated made network investment and other commitments to get merger OKs in northeastern states where FairPoint earlier faced service quality complaints (see 1706280042).
California net neutrality bill watchers continued to wait for Gov. Jerry Brown (D) to sign or veto SB-822 ahead of a midnight Sunday deadline. With anticipation running high for a lawsuit if California enacts the measure, FCC Republicans continue to signal they view it as pre-empted by their net neutrality deregulation.
Several more Colorado communities plan ballot questions in November on broadband projects. Many counties and municipalities cleared such ballot votes in recent elections to opt out of a 2005 state restriction on municipal broadband known as Senate Bill 152. Reversing that law may no longer be necessary given success of opt-out votes, and such votes combined with new state funding for broadband could lead to public-private partnerships in the state, local officials said in interviews. CenturyLink said citizens should support partnerships.
Maryland's Public Service Commission voted 5-0 Wednesday to note Sprint’s sale to T-Mobile and require applicants notify the commission about any changes to the deal’s status. PSC staff believes the transaction is in the public interest but need not be formally approved because T-Mobile isn't a phone company under the statute and Sprint doesn’t operate in Maryland, said Associate Staff Counsel Kenneth Albert at the livestreamed meeting. Chairman Jason Stanek said “obviously this is a large merger, but we are not the primary venue.” In another unanimous vote, the PSC similarly noted but didn’t have to approve the $2 billion transfer of Mitel Cloud Services to MLN TopCo, a Cayman Islands exempted company. Staff said the deal is in the public interest, Albert said. Stanek said he’s “always skeptical of transactions that are effectuated in the Cayman Islands just for the purposes of being a shell company.”
“We cannot afford to fixate on infrastructure builds alone,” ex-FCC Commissioner Mignon Clyburn said Wednesday in livestreamed remarks at the Great Lakes Connect event in Fairlawn, Ohio. USF should continue to support affordability through the Lifeline program in addition to infrastructure, “for ‘if you build it, they will come’ only happens when a person can afford the service,” she said. Connecting fiber alone won’t bridge the digital divide; adoption issues like affordability and relevance must also be addressed, Clyburn said. “But strangling the Lifeline program, the nation’s only means-tested universal service program that addresses the cost of voice and broadband service, and allowing only facilities-based providers to offer Lifeline service … will leave an estimated 70 percent of subscribers who cannot afford communications service today without a viable option tomorrow.” As Clyburn spoke, Lifeline advocates held a small rally outside FCC headquarters opposing the agency's proposal to ban resellers from the program (see 1809260029).
Vermont may wait for California to implement its privacy law before crafting its own, said Vermont Attorney General T.J. Donovan (D) in a teleconferenced hearing Tuesday (see 1809180042). “I guarantee there’s going to be interest in Vermont,” but “do we try to do something with a fraction of the resource that California has, or do we watch to see what California does, and then build off that?” Vermont has a responsibility to be a “good steward” of citizens’ data, Donovan noted. Consumers Union and Common Sense Kids Action officials praised the California law and urged strong privacy rules in Vermont. The California law takes effect in January 2020, with more tweaks to it by the legislature possible before then (see 1809040053). Meanwhile, Tuesday was the last day for comments on possible District of Columbia ISP privacy rules by the D.C. Office of Cable Television, Film, Music and Entertainment, said a spokesperson for the office. Those comments weren’t immediately available.
Comcast failed to make a “plausible” claim that its free speech right was violated when the Vermont Public Utility Commission required the company to expand cable TV services, a judge said last week in an order (in Pacer) issued at U.S. District Court in Rutland. The court allowed Comcast’s federal pre-emption claims under the Cable Act and didn’t let the VPUC claim sovereign immunity to other counts. Comcast said the VPUC exceeded authority by requiring the company in a cable franchise agreement to build 550 miles of new cable and enhance support for public, educational and government channels (see 1712190036). The company argued that violated the First Amendment. Chief Judge Geoffrey Crawford disagreed: “Even giving Comcast the benefit of all reasonable doubts and inferences ... Comcast has failed to plausibly allege that the line extension conditions are a means of exercising a content preference." Requiring Comcast to extend cable deployment doesn’t “favor or disfavor any particular message or view,” Crawford said. Vermont has an important interest -- expanding cable TV services -- unrelated to speech suppression, he wrote. Even if right that the expansion requirements impose bigger burdens on its speech than on other operators, “none of Comcast's allegations plausibly suggest that the burdens are substantially greater than necessary to further Vermont's important interests.” He allowed Comcast federal pre-emption claims, saying it may have statutory cause of action under the judicial review provision of the Cable Act. "Vermont has waived any sovereign immunity that the VPUC might enjoy when acting as the franchising authority for cable television,” Crawford wrote. “Judicial review in state or federal court is an essential part of the package of state regulation conducted pursuant to federal legislation. Vermont voluntarily accepted the offer by electing to regulate under the Cable Act.” A Comcast spokesperson praised “the thoroughness of the Court’s ruling, which only dismisses a single count and allows Comcast to proceed on its challenges to all of the disputed franchise conditions under the remaining eight counts.” The VPUC didn’t comment.
The California Public Utilities Commission may deny consumer advocates’ petition for rulemaking to update privacy rules for wireless carriers. Members may vote Oct. 25, said the proposed decision of Administrative Law Judge Jason Jungreis released Friday. The Utility Reform Network (TURN) and Consumer Federation of California urged stricter such consumer proprietary network information rules (see 1803270037). California’s June privacy law (see 1806290043) is one reason the rulemaking isn’t needed, Jungreis said. “Because of the importance of information privacy to California consumers, however, we intend to monitor the issues raised in this Petition and, if there appears to be a need for additional privacy rules in the future, the Commission can open a Rulemaking.” TURN disagreed. “The protections we're asking for here are very basic: disclosure of data sales and customer choice,” a spokesperson said. “The CPUC proposal would continue to [allow] these very profitable sales of customers' personal information to go on largely in secret, without offering consumers a choice.” Also at the meeting, commissioners may vote to make administrative changes to the rural and urban regional broadband consortia grant account as part of the CPUC implementing a 2017 law to revamp the California Advanced Services Fund (see 1807120005), said a proposed decision by Commissioner Martha Guzman Aceves posted Friday in docket R1210012.
State attorneys general are showing interest in T-Mobile’s proposed Sprint buy, though it's too soon to say if it will lead to an antitrust challenge of the $26 billion deal, observers told us. Also expect action at some state commissions, with the Pennsylvania Public Utility Commission the latest to give itself extra time to do a thorough review, they said. States bring “a unique role and perspective to look at these larger mergers and to tease out the impact ... on their specific constituents and consumers,” particularly vulnerable populations, said Christine Mailloux, managing director-San Diego for The Utility Reform Network (TURN).
The California Public Utilities Commission may next week OK plans by Frontier Communications to invest about $2 million in the state rather than pay fines for substandard service quality in 2017. Commissioners plan to vote on two resolutions approving Frontier advice letters Sept. 27 as part of their consent agenda, which requires unanimous consent. Rules permit a carrier to invest no less than twice the amount of its annual fine to enhance service quality in a measurable way within two years. One draft resolution would accept 25 Frontier broadband projects valued at about $1.95 million instead of a $759,833 fine for failing to meet minimums for out-of-service repair interval and answer-time metrics. Another draft resolution would accept a Frontier plan to invest $128,555 in five service-quality projects rather than take a $63,540 fine. Frontier supports the draft orders accepting investment proposals in lieu of fines, a spokesman said. "Frontier’s proposed investment for its 2017 performance is substantially higher than applicable fines and will deliver much-needed enhancements to California’s telecommunications infrastructure. Instead of contributing to a general fund not dedicated to service quality improvement, Frontier’s approach will improve telecommunications infrastructure in California in a measurable way within two years, while also addressing targeted service quality improvements." These actions would mean “Frontier keeps the money,” emailed Tellus Venture Associates President Steve Blum, a consultant for local governments. “In theory, it should be money that wouldn't have otherwise been spent on service quality upgrades, but that's impossible to know.” With the items on the consent agenda, he said, “it might skate through without comment.” The Utility Reform Network hasn't weighed in on the Frontier case but is generally skeptical of the CPUC policy allowing carriers to avoid fines for service-quality lapses by promising investment, said TURN Managing Director-San Diego Christine Mailloux. Also at the meeting, commissioners plan to vote on a draft order to extend to Sept. 29 the statutory deadline in an interconnection dispute between AT&T and VoIP provider Vaya (see 1712290022).