Broadening the multichannel video programming distributor definition to include some forms of online video distributors would remove a copyright problem that would allow "immediate introduction" of Internet distribution of local broadcast stations to IP-enabled devices, the Telletopia Foundation said in an FCC ex parte filing Wednesday in docket 14-261. It recapped a meeting between Telletopia and a staffer from Commissioner Jessica Rosenworcel's office. The nonprofit has been actively lobbying for the MVPD redefinition (see 1511100014 and 1512100017) that Chairman Tom Wheeler's office had once said was a major priority, though Wheeler has since pulled back, indicating in December such a reclassification could still be part of some other video proceeding this year (see 1512170046). In its filing, Telletopia said it offered the argument that multichannel content offerings not providing local broadcast signals or taking advantage of the consent benefits of MVPD regulation shouldn't be subject to those MVPD rules, but that an OVD-MVPD seeking either retransmission consent or program access rules should be subject to those rules' obligations.
Charter Communications' buying Bright House Networks and Time Warner Cable seems likely to get FCC approval by early April, Wells Fargo Senior Analyst Marci Ryvicker said in a note to investors Tuesday recapping investor meetings in New York held with "our regulatory contacts." Conditions on Charter/TWC/BHN likely will mirror those required in AT&T/DirecTV, such as expanded broadband deployment, commitment to a stand-alone broadband offering, a low-income Internet offering and adherence to net neutrality guidelines. Altice's buying Cablevision is similarly "on track" for FCC approval, though approval by the New York Public Service Commission could be a separate story, Wells Fargo said. It also said that with Nexstar's buying Media General, "there is nothing that stands out from a regulatory angle that would prevent a post-auction close."
The Stop Mega Cable coalition opposed to Charter Communications' proposed buys of Bright House Networks and Time Warner Cable is continuing lobbying efforts at the FCC. Representatives from beIN Sports, Consumers Union, Dish Network, ITTA and the Sports Fan Coalition met Tuesday with Commissioner Mike O'Rielly's Chief of Staff Robin Colwell, said a filing Wednesday in docket 15-149. Stop Mega Cable said it reiterated its oft-repeated arguments (see 1602110045 and 1602090019) of the broadband, online video distribution and programming market harms that would come from consolidation of market power in New Charter's hands, as well as the likelihood of coordinated actions with Comcast. Charter has been trying to rebut some of those assertions via its company blog. Last week, it said that the New Charter business model is pro-OVD: "Simply put, we want our customers to use as much broadband as they want. If our customers want to stream their content from online sources beyond the cable box, they can do so. Our competitors don’t always feel this way, which is why some of them are trying to block this merger.”
Smaller is better when it comes to Charter Communications' buying Bright House Networks and Time Warner Cable, as New Charter "won’t represent a new ‘top dog’ among Internet and cable providers" if the $89.1 billion deals go through, Charter said in a blog post Tuesday. It focused on contrasting Charter/TWC/BHN with the failed Comcast bid for TWC, and said New Charter "will be significantly smaller than Comcast is today, and will face strong competition from the likes of AT&T, CenturyLink and Google -- all of whom are continuing to grow their footprint everywhere, including [in] the same areas that our companies already offer service." Charter also pointed to New Charter's relatively smaller command of the wired broadband and video markets compared with Comcast/TWC's, and to Netflix's support for Charter/TWC/BHN (see 1507150038). "The way we see it, New Charter will grow enough to provide real competition for those at the very top, while giving a louder voice to our values of customer service and innovation," Charter said. The FCC's unofficial 180-day shot clock for review of the deals stood Tuesday at 150.
The application seeking transfer of control of Wide Open West (WOW) to private equity firm Crestview is no longer getting streamlined treatment, the FCC Wireline Bureau said in a notice Monday in docket 16-12. The bureau said that move follows a letter from the Justice Department asking the FCC to defer any action on the application while it, the departments of Homeland Security and Defense review the transaction for law enforcement, national security or public safety issues.
Charter Communications should be forced to widely carry at least three independent, unaffiliated news services and any independent network that already has a national footprint and carriage on some rival multichannel video programming distributors (MVPDs), Herring Networks President Charles Herring said on a phone call with FCC staff, according to an FCC filing Friday in docket 15-149. The call was to discuss Herring's proposal (see 1602190062) for independent network-centric conditions for approval of Charter's buys of Bright House Networks and Time Warner Cable. According to Herring, New Charter should need to certify within a year of the deals' close that those three news services are available to at least 75 percent of its subscribers on service tiers that are at least as widely subscribed to as tiers on which TWC-affiliated news services are carried. Herring also said that "to correct past harms and minimize concerns of discriminatory, anti competitive and retaliatory behavior," New Charter should be required to carry any national, 24/7 indie programmer with no common ownership with an MVPD or broadcaster that already is carried in at least 5 million U.S. homes and on at least two of its bigger MVPD rivals, those being AT&T U-verse, DirecTV, Dish Network or Verizon Fios. If the indie network meets those terms, Herring said, it should get carriage for 10 years across all Charter systems at the same terms and conditions as the largest launched MVPD. Though seeking conditions, Herring previously has backed the Charter/TWC/BHN transaction. In a statement Monday, Charter said it "is committed to providing its customers access to diverse and independent programming and we carry more than 100 minority focused networks and offer more Spanish language programming than any other major provider. We appreciate the support for New Charter by numerous independent programmers including TV One, Baby First, RFD-TV, One World Sports, Fuse Media, Ovation, Inspire, AXS TV, The Blaze, Condista, Bounce TV, Crown Media, and Reelz.”
Verizon is rolling out new packages of its skinny bundle Fios Custom TV offering, it said in a news release Friday. The new Custom TV plans are Essentials, which has a variety of content, and the sports-centric Sports & More. Each of those comes with the Fios TV Local package, which includes local broadcast channels and other programming, it said. Tami Erwin, president-consumer and mass business, said customer feedback since the launch of Custom TV last year spawned the new packages.
The FCC vote Thursday that could open the set-top box market to third parties (see 1602180065) “may change the way in which we sell,” said Universal Electronics CEO Paul Arling on an earnings call later that day. “But it won’t change the fact that people still sit 10 to 12 feet on average from their television, and they’re going to want a product that will ease their ability to control various sources they have,” he said. “We don’t really see this as changing anything, but we'll have to see exactly how this thing shakes out." All operators are moving toward the concept of cloud-based advanced platform boxes, “making their user interface much simpler and much easier to use,” he said. Responding to an analyst, Arling said service providers in addition to Comcast and AT&T's DirecTV are moving to the latest platform.
Several communities in Virginia and Washington state are subject to effective cable competition and Comcast is exempt from rate regulation there, the FCC Media Bureau said in orders (see here and here) Friday. Ruling that the town of Orange, and Orange County, Virginia, have effective competition, the bureau said the county -- which opposed the Comcast petition -- didn't show any methodological flaw in the operator's data or identify any ZIP codes incorrectly considered to be part of Orange County. The bureau also rejected oppositions from Airway Heights, Washington, and Spokane, Washington, arguing Comcast data was questionable, as was Airway Heights' push that it consider some issues outside the statutory test for competing provider effective competition. The bureau order also covered Liberty Lake, Millwood and Spokane Valley, Washington. The orders covered areas with about 132,000 households, the largest of which was Spokane, followed by Spokane Valley. Thursday the bureau issued orders to Comcast and Time Warner Cable freeing them of local rate regulation in some other areas (see 1602180042).
Comcast and Clear Connection are at loggerheads about discovery issues and when their claims against one another should go to trial, said a joint status report filed Thursday in U.S. District Court in Sacramento. In the filing, Clear Connection said trial should be scheduled for Nov. 1, citing the time that passed since it brought its initial complaint in 2012. Comcast, in urging a May 2017 trial start, said the amount of discovery, disclosing experts and filing summary judgment motions makes Clear Connection's proposed schedule unworkable. In its initial antitrust and unfair competition claims against Comcast, Clear Connection alleged Comcast conspired with some cable installation companies to consolidate the installation market and force Clear Connections and others out of business. Comcast subsequently brought counterclaims for Clear Connections' alleged failure to meet contractual indemnification obligations. In the status report, Comcast said it intends to file motions for summary judgment on its counterclaims and Clear Connections claims. Clear Connections in the status report -- citing "the scope of the present antitrust claims and the sheer size and magnitude of Comcast as a corporate defendant" -- asked for lifting of the default caps on discovery, which Comcast called "a fishing expedition." Clear Connection's website said the company installs cable for data networks.