New York PSC Delays Comcast/TWC Decision Ahead of Thursday Vote
The New York Public Service Commission (PSC) said Wednesday that it’s delaying a decision on its review of the Comcast/Time Warner Cable (TWC) deal to allow “additional time to analyze and digest” issues related to the deal. The commission had been set to vote Thursday on Comcast/TWC and the associated Charter license swap, with the focus remaining on what public interest concessions the PSC might attach to its expected approval of the deal. The PSC said it had accepted a staff request to delay a final vote on the review “given the depth and breadth of the public record and the importance of the issues presented.” Parties in the New York PSC review have been engaged in an ongoing dispute over document confidentiality that had also been an issue at the FCC and with the California Public Utilities Commission (see 1410230045), though a PSC spokesman had previously expressed confidence the commission would move ahead with a vote.
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The PSC now “fully expects that it will complete its review by year’s end,” a spokesman said Wednesday. The PSC's decision on Comcast/TWC remains on track to include major but ultimately palatable public interest conditions, though recent events in the net neutrality debate could be a wild card, industry lawyers told us. California and New York are the only major state regulators that haven’t voted on the deal. Comcast declined to comment.
President Barack Obama’s backing Monday of Communications Act Title II reclassification (see 1411100035) will have more of an influence on the FCC’s Comcast/TWC review, but may have “very strong implications” for the conditions the New York PSC includes in its approval of the deal, said telecom lawyer Greg Taylor. Comcast said Tuesday that it doesn’t support reclassification but repeated its commitment not to pursue paid prioritization. The PSC may view Comcast’s pro-net neutrality statements as an “illusory promise” and could move to require a more concrete commitment, Taylor said. It would be tough for the New York PSC to deal with the net neutrality question without risking FCC pre-emption, but if the PSC did include a net neutrality commitment as a merger condition, “I think that would have an influence at the federal level,” said an industry lawyer who has experience with the New York PSC. “New York can’t necessarily legislate net neutrality, but it’s a way to open the door,” Taylor said.
It’s unclear how the PSC will incorporate requests from New York politicians seeking concessions from Comcast on free and low-cost Internet service offerings, Taylor said. New York City Public Advocate Letitia James and Councilman Ben Kallos, a Democrat, are leading the group of city and state politicians who want the PSC to require Comcast to offer free broadband access to all New York City public housing residents, community centers, homeless shelters and domestic violence shelters. The politicians are also seeking free Wi-Fi in New York City’s public parks, an expansion of Comcast’s low-cost broadband offerings, improvements in customer service and additional customer service centers in the states. The New York Department of Public Service staff recommended in August that the PSC require at least $300 million in public interest commitments if it approves Comcast/TWC, including improvements in state infrastructure, customer service and low-cost broadband offerings (see 1408140041).
It’s possible -- but not certain -- that the PSC will include the commitments that James and the other New York politicians are seeking in its decision since they want concessions well beyond Comcast’s voluntary commitment to expand the Internet Essentials program, Taylor said. “I think it’s a move by the New York politicians just to get what they can get,” he said. “They’re striking while the iron is hot.” Comcast might not consider the politicians’ requested commitments a “complete showstopper,” particularly given the importance of New York in the Comcast/TWC deal, said the industry lawyer. “They want access to the New York customer base” to improve their Northeast footprint.