The Ariz. Corporation Commission (ACC) plans an Aug. 28 hearing o...
The Ariz. Corporation Commission (ACC) plans an Aug. 28 hearing on a staff recommendation to fine Cox $2 million for helping draft a special service deal with a housing developer last year that all but shut out rivals from…
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providing local service to the 17,000-home Vistancia planned community in Peoria. The staff complaint alleged the contract between Cox and developer Shea Sunbelt violated state and federal laws that prohibit discriminatory and anticompetitive right of way access pacts for voice, data and video services. Under the arrangement, the town of Peoria granted Shea Sunbelt control over access to public rights of way within the Vistancia community. Shea charged Cox a $1 million ROW access fee, but also paid Cox $3 million to construct the telecom network within the development. Cox and Shea would have shared revenue based on the number of customers Cox signed up. The deal came to light after competitive phone provider Accipiter Communications sued in state court and filed a complaint with the ACC alleging the pact imposed onerous terms on Cox’ rivals that made it all but impossible to serve Vistancia customers. Cox settled the Accipter suit for $1 million, but the ACC staff continued the complaint case. Cox said the proposed fine is excessive and inappropriate, particularly since Cox cooperated in addressing the situation. But the ACC staff said Cox engaged in blatant anticompetitive behavior and the $2 million fine would send a very strong signal to all telecom providers that the ACC is serious about ensuring fair competition.