New Jersey Says Comcast Use of Verizon Data Violated SpectrumCo Deal Conditions, Exploited Sandy
The New Jersey office trying to stop Comcast from being let out of local basic rate regulation told the FCC the cable operator’s petitions for special relief violate the commission’s order approving AWS license transfers from SpectrumCo to Verizon Wireless. The New Jersey Division of Rate Counsel asked the FCC to dismiss Comcast petitions for a finding that the cable operator is subject to effective competition in 10 New Jersey franchise areas because it relied on competitively sensitive data provided by Verizon to make its case. The FCC’s order approving the Verizon Wireless-SpectrumCo deal “precludes the sharing and use of competitively sensitive data between Verizon and Comcast,” the state said (http://bit.ly/VJtX37). A spokeswoman for Comcast declined to comment.
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Moreover, the subscriber data and household data Comcast used to support its petitions were gathered during the aftermath of Superstorm Sandy, the state said. “Hurricane Sandy resulted in substantial losses of homes,” the state said. That change skewed the data Comcast submitted to show it was subject to effective competition by other service providers in the franchise areas, it said.
Verizon had in December said it was required to give Comcast its FiOS subscriber count and asked the FCC to issue a protective order to limit the data’s availability to the public (http://bit.ly/WIpS14). New Jersey claimed that the Media Bureau’s decision to issue that protective order confirmed the competitively sensitive nature of the data. A Verizon spokesman declined to comment on New Jersey’s motion.
The consent decree parties to the SpectrumCo transaction reached with the Justice Department “clearly established the prohibition on disclosure of competitively sensitive information by either Verizon or Comcast,” New Jersey said. “Absent the FCC modifying its Spectrum Decision and its reliance on the Consent Decree, Comcast cannot use Verizon’s data in support of its Petitions,” it said.
If the FCC dismisses the petitions and Comcast refiles them, the subscriber data it submits with them should account for any cancellations of service that resulted from Superstorm Sandy, the state said. “The satellite subscriber and household data time lag, and the absence of accounting for such a horrific weather event undermine the reliability of both the household and satellite penetration data,” it said.