Massachusetts Battling Charter Effective Competition Petition
Massachusetts is resisting a Charter Communications effort to get 32 Massachusetts franchise areas and Kauai, Hawaii, to be declared effectively competitive due to the existence of DirecTV Now (see 1809170020). The LEC effective competition test requires a direct physical connection…
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between a company providing local exchange service and the household, and DirecTV Now fails that test, the Massachusetts Department of Telecommunications and Cable said in a docket 18-283 posting Thursday. It said DirecTV Now doesn't provide service comparable to Charter's and doing so would reclassify online video distributors as MVPDs, subject to cable franchising and other regulatory requirements. It said DirecTV-parent AT&T doesn't provide video programming services in the franchise areas since FCC rules require the LEC have and provide a physical connection -- something AT&T doesn't. And it said finding effective competition by a non-facilities-based over-the-top service would undermine FCC policy goals of limiting internet regulation and encouraging facilities-based investment. The Massachusetts attorney general said in a separate filing DirecTV Now availability depends on Charter's fixed broadband internet services and that "raises serious legal questions" about whether DirecTV Now can be the basis for determining effective competition. It said the FCC should require from Charter information about how common it is for it to be the only fixed broadband internet provider in a franchise area, download speed packages available to customers in those franchise areas, and whether Charter throttles those speeds for customers who don't take its cable TV services. It also requested the FCC consider holding an evidentiary hearing or refer the petition to an administrate law judge. Charter and Kauai County didn't comment Friday.