California’s regulatory review of T-Mobile-Sprint deal has light years left to run

29 September 2018 by Steve Blum
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The proposed purchase of Sprint by T-Mobile will get a thorough workover by the California Public Utilities Commission, and a final decision on whether or not to allow it won’t come until next summer. The commissioner running the review, Clifford Rechtschaffen, laid out the issues that he’ll investigate in a ruling on Friday.

Rechtschaffen had to decide how wide ranging his inquiry will be. Sprint and T-Mobile wanted it to be very narrow, and focus on two particular issues: could a relatively small Sprint subsidiary that does some wireline business in California be sold to T-Mobile, and could T-Mobile take over Sprint’s California mobile carrier registration.… More

Move fast and build things, like broadband infrastructure

24 September 2018 by Steve Blum
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The debate over California’s primary broadband infrastructure subsidy program continues. Another round of comments landed at the California Public Utilities Commission Friday, with ideas – some good, some not – for changing the way the California Advanced Services Fund (CASF) is run.

I drafted and submitted the Central Coast Broadband Consortium’s (CCBC) contribution. There are many administrative, practical and, yes, political details to be worked out. Which is a large part of the problem with the program: the grant application and review process is complicated, time consuming and capricious.… More

Wildfire liability changes head into California law and onto your electric bill

23 September 2018 by Steve Blum
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It’s up to the California Public Utilities Commission now to decide whether your electric bill will include billions of dollars worth of damage done by wildfires. Governor Jerry Brown signed senate bill 901 on Friday. Among other things, SB 901 allows privately owned electric utilities to raise prices to offset damage payouts due to fires that were, to one degree or another, their fault.

Utilities – electric and telecoms – have the right to plant and use poles along roads and waterways in California, with very few restrictions and no rental fees at all.… More

CPUC leaves SCE’s fiber business intact, but the beatings will continue

17 September 2018 by Steve Blum
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With barely a mention at its meeting, the California Public Utilities Commission closed the first chapter of a saga that should never have been written. By a unanimous vote, commissioners allowed Southern California Edison to withdraw its request for blanket approval of a dark fiber lease deal with Verizon.

SCE asked to pull the application because the deal was dead, the victim of a mauling by so called consumer advocates and a purblind proposed decision by CPUC commissioner Clifford Rechtschaffen.… More

As California burns, governor decides whether legislature’s utility liability solution is good enough

12 September 2018 by Steve Blum
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A plan to reduce both the risk of catastrophic wildfires happening and the risk that such fires will bankrupt privately owned electric utilities is on California governor Jerry Brown’s desk. He has to decide if the deal reached by legislative leaders as the clock ran out on this year’s session is good enough.

Senate bill 901 would, among other things, allows the California Public Utilities Commission more flexibility in deciding whether liability costs can be passed on to electric customers.… More

Protect our monopolies, telcos, cable tell CPUC

11 September 2018 by Steve Blum
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AT&T doesn’t want to be bothered with any performance requirements or public disclosures. It just wants the California Public Utilities Commission to write it a monthly check, drawn on the California Advanced Services Fund (CASF). Boiled down, that’s its idea for rebooting CASF, following its success at convincing California lawmakers to turn the program into its own private piggy bank.

In that respect, AT&T is being consistent. But there is one, big whopper in the recommendations it submitted last month: AT&T claims the “communications environment” is “hypercompetitive”.… More

T-Mobile’s takeover of Sprint challenged in California

20 August 2018 by Steve Blum
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T-Mobile’s plan to buy its smaller competitor, Sprint, faces formal opposition in California. The California Public Utilities Commission’s office of ratepayer advocates and a pair of consumer advocacy groups filed formal protests to the merger, claiming, among other things, that it runs afoul of anti-trust principles and would result in a significantly less competitive mobile telecoms market.

The deal has to be approved by the CPUC, but the scope of that review is limited. So far.… More

No deal on California wildfire liability

19 August 2018 by Steve Blum
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Utility companies will still have to pay the full cost of wildfire damage in California, even if their infrastructure isn’t fully responsible for starting it. A July agreement to revise California’s utility liability law turned into a August stalemate, and the end of the legislative session is coming fast in Sacramento.

According to a story by CapRadio reporter Ben Adler (h/t to Scott Lay at Around the Capitol for the pointer), legislative leaders haven’t come to an agreement on how to change the state’s strict utility liability law, known as inverse condemnation…

“I think it’s safe to say that ‘inverse condemnation’ is off the table,” Sen.

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CPUC should follow New York’s lead, hold Charter to obligations

17 August 2018 by Steve Blum
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The California Public Utilities Commission imposed a long list of obligations on Charter Communications, when it granted permission for the purchase of Californian cable systems belonging to Time Warner and Bright House in 2016. Some of those requirements mirror the conditions that the New York Public Services Commission attached to its approval of the deal.

Unlike the NYPSC, however, the CPUC has not demanded public accountability from Charter. New York regulators nipped at Charter’s heels since the acquisition closed, and then revoked permission and ordered Charter to reverse the sale and give up its New York markets because “the company was not interested in being a good corporate citizen”.… More

Performance, not weasel words, should drive California broadband subsidies

16 August 2018 by Steve Blum
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The reboot of the California Advanced Services Fund (CASF) broadband infrastructure subsidy program continues, with a new round of comments and suggestions landing at the California Public Utilities Commission.

I drafted the Central Coast Broadband Consortium’s filing. One issue that the CPUC should consider very carefully is what qualifies as a bona fide service offer.

When the California legislature allowed lobbyists for AT&T, Frontier Communications, Comcast and Charter Communications to rewrite the law and turn CASF into their own, private piggy bank, the minimum broadband standard was lowered to 6 Mbps download and 1 Mbps upload speeds.… More