FCC Approves Charter/TWC/BHN With Conditions Reflecting Charter Proposals
The FCC signed off officially on Charter Communications' buys of Bright House Networks and Time Warner Cable with conditions, the agency said in a news release Friday. The order, including conditions, is expected to be issued in the coming days, one agency source told us. Charter in a statement said the conditions in the order largely "codified or reflected specific commitments" it made at the start of the transaction review process. The operator noted that the curbs include settlement-free peering, no usage-based billing, provision of a low-income broadband program and buildout of its high-speed broadband footprint. An OK was expected after the deals worth about $90 billion were announced (see 1507160021) and last week, when most FCC members had OK'd the deals (see 1605050049).
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The conditions "are largely extensions of the longstanding consumer friendly values and practices of our company, and based on the commitments we put forward during the review process," Charter said. "Charter will be a stronger competitor in the broadband and video markets, well positioned to deliver these benefits and more to consumers.” An FCC representative couldn't say how different the draft and final orders are. In the draft order, the agency proposed such conditions as 1 million of Charter's new broadband connections be in markets served by other broadband providers, and requiring an independent monitor to ensure compliance (see 1604250039). The Justice Department separately had proposed conditions that would limit Charter's ability to restrict programmers from distributing content online.
The quick turnaround from "must-vote" status to final approval often happens because once items are circulated on the eighth floor, few changes typically have been made, at least under Chairman Tom Wheeler, said a cable lawyer with deal experience. The deal still needs approval by the California Public Utilities Commission, which is scheduled to vote Thursday (see 1605050017). Charter CEO Tom Rutledge has said the company could close on the deals within days of FCC and CPUC approval (see 1604280063).
Public Knowledge, a member of the Stop Mega Cable coalition that had opposed New Charter approval -- said Charter's voluntary commitments, "if properly enforced, counter some of the worst harms associated with industry consolidation, and advance the public interest." Stop Mega Cable said the deals' conditions "need to be strictly enforced to ensure that Charter is held accountable for living up to its commitments." It also said that between New Charter and Comcast, "the U.S. now has a national cable duopoly controlling, among other things, over two-thirds of all high-speed broadband households," and those two "must not be allowed to abuse their power to thwart the growing and much needed competition posed by emerging over-the-top streaming services."