monopoly

CPUC leaves heavy lifting to feds, okays CenturyLink-Level 3

13 October 2017 by Steve Blum
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Update, 18 October 2017: the CPUC posted the final decision, no changes:

CPUC decision approving settlement regarding proposed transfer of control of the Level 3 operating entities, 12 October 2017.

CenturyLink’s purchase of Level 3 Communications has the blessing of the California Public Utilities Commission. In a unanimous vote yesterday, commissioners approved a decision authored by administrative law judge Regina DeAngelis that grants permission, subject to various administrative requirements and compliance with a settlement agreement reached with consumer advocacy groups.… More

CPUC set to wave through CenturyLink-Level 3 deal today

12 October 2017 by Steve Blum
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CenturyLink’s purchase of Level 3 Communications appears ready to sail through to approval by the California Public Utilities Commission later this morning. The proposed decision, drafted by CPUC administrative law judge Regina DeAngelis, was still on the consent agenda as of last night. That means no commissioner wants to talk about it or hold it for consideration at a later meeting.

That’s not a guarantee of approval today – commissioners can put a hold on the decision or pull it off the consent agenda for discussion during the meeting.… More

Feds clear a dark path for CenturyLink-Level 3 deal in California

8 October 2017 by Steve Blum
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CenturyLink’s purchase of Level 3 Communications is on track to be approved by the California Public Utilities Commission on Thursday. It’s always possible that a decision could be bumped to a later meeting, but there’s no indication at this point that there will be any delays.

A settlement CenturyLink reached with anti-trust lawyers at the federal justice department last week takes the edge off the damage the deal will do to California’s broadband market, although it doesn’t eliminate it.… More

CenturyLink trades long haul fiber routes for permission to buy Level 3

4 October 2017 by Steve Blum
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Allowing two of the major – sometimes only – sources of inter-city dark fiber to merge would be anti-competitive and illegal, according to the federal justice department. So in order to gain approval to buy Level 3 Communications, CenturyLink agreed to a settlement that requires it to give up control of 24 strands of dark fiber between 30 pairs of cities, including five key California routes.

The settlement also requires CenturyLink to divest overlapping metro fiber systems in Albuquerque, Boise and Tucson.… More

The U.S. mobile broadband market is competitve, says FCC

3 October 2017 by Steve Blum
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The Federal Communications Commission has made a case for declaring that the mobile broadband market in the U.S. is broadly competitive, in a qualitative, preponderance of the evidence sort of way. Looking at a number of different metrics, including usage (see chart above), pricing, advertising, investment coverage, the FCC decided that when it was all added up, the result was “there is effective competition in the marketplace for mobile wireless services”.

One key indicator – half statistical, half anecdote – was the way the four major nationwide carriers responded to each other when unlimited data plans were reintroduced…

One significant trend that has developed recently is the return of “unlimited” data plans.

… More

Governor Brown urged not to lower California's broadband speed standard

2 October 2017 by Steve Blum
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Governor Jerry Brown has two weeks to decide if California’s broadband speed standard should be slower than it is now, and if the California Advanced Services Fund should be turned into a piggy bank for AT&T, Frontier Communications and the cable industry. That’s what assembly bill 1665 would do, if Brown allows it to become law.

He’s getting plenty of encouragement to sign it, from the California Emerging Technology Fund and, one might safely assume, the platoon of lobbyists that telephone and cable companies maintain in Sacramento and back with generous cash contributions to politicians of both parties.… More

October dawns with CenturyLink-Level 3 deal still undecided

1 October 2017 by Steve Blum
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Today is the day that a CenturyLink lawyer described as “almost too awful to contemplate”: October is here and CenturyLink doesn’t have permission yet to buy Level 3 Communications, from either the California Public Utilities Commission or federal regulators that are reviewing the transaction.

It’s not really all that horrible. The 30 September 2017 deadline was a target that the two companies set for wrapping everything up. It’ll cost them more to keep the financing arrangements intact, but the tab isn’t going to hugely different from what it would have been if they had a better grasp of what it takes to get big telecoms mergers okayed and allowed more time from the beginning.… More

Political heat rising over California broadband giveaway bill

27 September 2017 by Steve Blum
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A so far successful attempt to funnel $300 million of taxpayer money to AT&T and Frontier Communications in exchange for substandard, monopoly broadband service is generating some unpleasant blowback for assemblyman Jim Wood (D – Healdsburg), one of its chief backers. Assembly bill 1665 was overwhelmingly approved by the California lawmakers in the closing hours of the legislative 2017 session.

It reinstates a tax on phone bills that would be earmarked for broadband infrastructure grants, made under new rules that 1.… More

FCC doesn't know enough about competition, or lack thereof, says GAO

23 September 2017 by Steve Blum
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The Federal Communications Commission needs better information about broadband competition, according to a report by the federal government accountability office. Existing data shows that 51% of U.S. residents only have access to one provider that offers at least a minimum level of broadband service, which the GAO defines using the FCC’s own advanced services standard of 25 Mbps download and 3 Mbps upload speeds.

The agency collects a lot of data, including information about how many broadband providers serve a given market, but not key information about prices and service offerings, the GAO report said…

As indicated by FCC’s broadband data, competition does not exist in all areas.

… More

War for California's broadband future isn't (quite) over

18 September 2017 by Steve Blum
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The politics of broadband in California are largely driven by the campaign cash that incumbent telephone and cable companies – and sometimes the unions representing their employees – stuff into the pockets of senators and assembly members. That influence is moderated by the energetic, but often futile efforts of broadband activists across the state. So it was with assembly bill 1665, which is on its way to governor Brown’s desk.

If he signs it, AB 1665 will transform the California Advanced Services Fund (CASF) from a useful source of capital for broadband companies that aim to inject at least a little competition into California’s highly concentrated, sclerotic broadband market into a $300 million slush fund, mostly for telcos with rural monopolies, like AT&T and Frontier, but also allowing a taste for cable companies, like Comcast and Charter.… More