EarthLink is too late to object in New York to Verizon’s proposed buy of XO Communications, Verizon protested Tuesday. EarthLink condemned the deal at the New York Public Service Commission Monday, the due date for reply comments. But the company should have filed the opposition June 6, when initial comments were due, Verizon said in a letter to New York PSC Secretary Kathleen Burgess. EarthLink didn’t even “acknowledge its tardiness,” the big telco said. “The Commission should not reward EarthLink’s studied contempt for the requirements of the Notice and for the Secretary’s Office. Its filing should be stricken from the record of this proceeding.” In the reply comments, EarthLink said the PSC “should determine that the proposed transaction poses a serious threat to competition and consumer welfare.” It would eliminate XO as a competitor in retail and wholesale wireline business data services in Verizon’s New York ILEC region, and as an “important wholesale provider of BDS inputs, including central office collocations and transport services,” the ISP said. EarthLink buys these services from XO, and fears prices will rise if the deal goes forward, it said. “These harms would ultimately be passed on to EarthLink’s retail and wholesale customers in New York in the form of higher prices and reduced innovation.” EarthLink Senior Vice President-Public Policy Chris Murray dismissed Verizon's protest about tardiness. "Maybe it's because the parties are concerned that the competitive harms here are real, that they've gone out of their way to prevent information from reaching decision makers," he emailed Wednesday. Windstream also opposed Verizon/XO in New York (see 1606130035).
The Arizona Corporation Commission will consider adopting a code of ethics, the regulator said Tuesday. Commissioner Tom Forese asked for comments and announced a formal workshop at a date to be determined. About six months ago ex-ACC Chairwoman Susan Bitter Smith resigned after an investigation by Attorney General Mark Brnovich (see 1512180034). The Republican AG asked the state Supreme Court to remove her from the ACC position due to conflict of interest, alleging Bitter Smith is a registered lobbyist and executive for Southwest Cable Communications Association. “It is not uncommon for an elected body to have a code of ethics and it is long overdue that the commission should have one,” Forese said in a statement Tuesday. “The creation of a code of ethics will allow us to bring in the brightest legal minds and discuss the conduct of commissioners; whether it involves campaign finance concerns, commissioners registered as lobbyists, or the proper use of travel funds. It is time for commissioners to put our house in order.” ACC Chairman Doug Little said he supports Forese and “look[s] forward to working with him on this important issue.” The commission will consider an ethics code that goes beyond existing state laws on conflicts of interest, prohibitions on accepting gifts from lobbyists and other unethical practices, it said.
Google could bring its fiber broadband service to Dallas, expanding the company’s Texas footprint that includes Austin and San Antonio, the company said Tuesday on its blog. It "would be a huge undertaking, so we want to make sure we’re prepared,” wrote Google Fiber Director-Expansion Jill Szuchmacher. “Working alongside Mayor Mike Rawlings [D] and local leaders, we’ll use our Fiber checklist to learn more about local topography, existing infrastructure, and other factors that may impact construction. Building a fiber optic network through a dense and complex urban environment like Dallas is challenging -- these discussions will help us deploy our network efficiently and responsibly.”
A California Assembly committee plans a hearing June 29 on a bill requiring telecom companies to provide notifications of major rural network outages. The requirement includes facilities-based VoIP providers that the FCC requires to provide access to 911 services. The state Senate passed the bill, SB-1250, in a 34-5 vote earlier this month (see 1606020011). The Assembly Utilities and Commerce Committee scheduled the hearing for 1:30 p.m. PDT at the State Capitol; it also will be webcast. The FCC last month approved revised rules on outage reporting and a Further NPRM that would extend reporting requirements to broadband providers (see 1605260054).
A California Senate committee plans a hearing next week on a constitutional amendment to dissolve the California Public Utilities Commission. The Senate Energy, Utilities and Communications Committee scheduled ACA-11 for its June 21 hearing at 9 a.m. PDT. The Assembly passed the measure on a 61-9 vote June 2, with legislators citing the CPUC handling of the troublesome transition of Verizon customers to Frontier Communications as one reason for an overhaul of state utilities regulation (see 1606020071). If the committee gives the green light, the measure will require a two-thirds majority vote in the Senate, then a ballot vote by voters in November.
The New York Public Service Commission plans to vote Wednesday on Altice’s $17.7 billion takeover of Cablevision, said a preliminary agenda released Monday for the PSC’s June 15 meeting. It’s the last regulatory OK needed for the deal to close. Union and local government officials, who at first voiced concerns, have supported approval with conditions (see 1605310044). The meeting will be 10:30 a.m. at the PSC’s Albany HQ and webcast online.
Verizon buying XO Communications won’t reduce competition, and no conditions are necessary, Verizon said in a Monday New York Public Service Commission filing. It responded to comments by Windstream, which opposes the deal without significant conditions to protect competition, particularly in the business data services market. “In fact, the proposed transaction will create substantial public-interest benefits,” Verizon said. "Attempting to prevent or delay the transaction, or to hobble it through unnecessary and burdensome conditions, will put those public-interest benefits at risk, and frustrate Petitioners’ efforts to enhance their networks to the benefit of customers and competition.” The deal will expand and enhance Verizon’s fiber facilities, with benefits for the company’s wireless network, the company said. Current XO customers will gain access to Verizon products and services, it said: There will remain “ample competitive alternatives following this transaction.” The combination won’t threaten use of unbundled copper loops for Ethernet-over-copper services, nor encourage price squeezes, as Windstream has claimed, Verizon said. “Verizon will have neither the incentive nor the ability to raise rivals’ costs due to the acquisition because … numerous competitive alternatives to XO’s services will remain available in virtually all locations.” Verizon and XO are also defending their proposed deal at the FCC (see 1605310038).
The Ohio Public Utilities Commission will interview commissioner applicants at a June 16 public meeting, the state commission said in a news release Thursday. The vacancy is for an unexpired term ending April 10, 2020. At the meeting, a 12-member nominating council will select four of nine interviewees to submit to Ohio Gov. John Kasich (R). The meeting starts at 8:45 a.m. CDT at the commission’s HQ and will be webcast. The Ohio PUC swore in Asim Haque as chairman last month (see 1605260001).
New York’s proposed conditions for low-income communities on Altice’s $17.7 billion takeover of Cablevision are “woefully inadequate,” Digital Divide Partners commented to the New York Public Service Commission, posted online Thursday. Digital Divide Partners is a U.S. Treasury-designated community development entity that provides funding and financial counseling to businesses in low-income communities, said its website. Advisory staff for the Department of Public Service had recommended a condition requiring Altice to roll out a low-income plan priced at $14.95 within five years, but Digital Divide Partners said “historical data has shown this approach to have very limited impact.” The staff's 25 percent adoption target for the plan leaves 250,000 public housing residents without broadband service, it said. “Adding insult to injury, enforcement of this requirement is weak at best, requiring only that Petitioner make ‘commercially reasonable efforts’ to deploy this program.” It said the “suggested remedy of free broadband access for 40 anchor institutions will hardly make a dent in what has been a longstanding digital inequity throughout underserved communities.” Union and government officials in New York have supported the proposed conditions (see 1605310044). The PSC is to rule on the deal June 16.
With state universal service fund revenue dropping, the Utah Public Service Commission plans to discuss ongoing revenue requirements of its fund at a technical conference June 21, the Utah PSC said in a notice Monday. The open, public meeting also will address “regulatory options” to ensure telecom providers who pay into the fund collect and remit required revenue, and ways to ensure funding, including possibly adding a line or connection surcharge, it said. Also, the commission asked the Utah Division of Public Utilities to present on declining universal service revenue. The meeting starts at 9:30 a.m. at the commission’s headquarters in Salt Lake City.