Competition/Antitrust

The latest development in ongoing skirmishes over One-Touch-Make-Ready (OTMR) policies is that competitive provider GoNetspeed testified in favor of legislation that would make the approach available in Massachusetts. OTMR rules require the owners of utility poles to allow one contractor to make changes, including moving an incumbent provider’s equipment. Traditionally, each provider handles its own equipment. Proponents of OTMR say that such rules speed service deployment.

The Department of Commerce’s National Telecommunications and Information Administration (NTIA), in a filing on behalf of the US government, urged the European Commission to promote affordable access to broadband, protect users’ access to online content, and avoid discriminatory measures that distort competition. The filing on May 19 is in response to the European Commission’s exploratory consultation on The Future

Comcast doesn't expect to generate much broadband subscriber growth in the near term, but the operator is holding fast to an expectation that the picture will change… eventually. Comcast grew its broadband base by a mere 3,000 broadband subscribers in Q1 2023. Comcast, like other cable operators, is weathering a mix of factors in the broadband market.

On December 14, 2022, Openreach notified Ofcom of a new pricing offer for its full-fiber services (Equinox 2). This offer gives lower prices to retail providers—such as BT, Sky, TalkTalk, and Vodafone—if they agree to use mainly Openreach’s full-fiber products for new orders instead of its legacy copper products. Having carefully assessed the range of evidence available—including responses to public consultation—Ofcom has decided not to prevent Equinox 2 from being introduced.

The Florida Legislature recently passed a bill that brings poles under state jurisdiction for any electric cooperative that elects to enter the broadband business.

For AT&T, the fastest home internet needs wires. The telecommunications giant is expanding its network of fiber-optic cables to deliver fast internet speeds for customers, including those in places where it doesn’t already provide broadband. The plan doesn’t come cheap.

Billions of dollars are about to flow from the Broadband Equity Access & Deployment (BEAD) Program, which is driving all kinds of interest in delivering fiber broadband to unserved and underserved areas of the US. In addition, the wireless carriers, T-Mobile and Verizon, are deploying fixed wireless access (FWA) in many underserved areas where people have never been happy with their choices of low-speed cable or DSL. Comcast CEO Brian Roberts said, “I don't think we competed as well for the lower end of the market.

Senator Richard Blumenthal (D-CT) introduced the Junk Fee Prevention Act  (S.916), which takes aim at eliminating fees that are not advertised for a product but that get added on after a customer buys a product or service. These fees were attacked this year by President Biden in the State of the Union Address. Telecommunications companies, particularly cable companies, are among the worst in having hidden junk fees that are not included in advertising but are added to a customer’s first bill.

In a period of only nine days—April 25 to May 3, 2023—the the Federal Trade Commission (FTC) announced initiatives to look at unfair and deceptive acts involving AI and proposed banning Meta Platforms from targeting young users. These come on top of two years of antitrust aggressiveness and consumer protection assertiveness. But both actions beg the question, “Are the tools strong enough for the task?” Both the AI and Meta activities are indications of the limitations that FTC Chair Lina Khan and the agency face as a result of being tied to industrial-era statutes and procedures.

While CEOs of the companies leading the AI wave met at the White House on May 4, the leaders of the Biden administration's antitrust campaign against tech giants were also gathering for a stock-taking a few blocks away. In each arena, the industry has so far lapped its would-be regulators — but at least with AI, the race is still young.