Telecom accuses Comcast of blocking video competition

The nation’s third largest carrier, CenturyLink, filed comments with the FCC on Comcast’s proposed merger with Time Warner, asking the commission to, essentially, restrict the merger.

In its introduction CenturyLink said, “Absent aggressive action by this Commission, the merger between Comcast Corporation (“Comcast”) and Time Warner Cable, Inc. (“TWC”) presents a grave threat to the development of facilities-based video competition throughout the country.”

CenturyLink has been trying to gain a video foothold around the country; the company has entered12 markets, offering a fiber-optic IPTV platform called PrismTV. However, in these markets and other projected ones, CenturyLink has run into problems with Comcast, the country’s largest cable company. As CenturyLink wrote, “Comcast has been uniquely and extraordinarily aggressive in seeking to delay CenturyLink’s entry into new markets.”

Wherever CenturyLink has attempted to sell its PrismTV, Comcast has raised concerns with local authorities. As CenturyLink wrote, “The ‘concerns’ that Comcast has raised, while couched in terms of ‘fair competition,’ are in reality an effort to have the LFA [local franchising authority] impose such onerous and unreasonable buildout requirements that the new entrant will not be able to obtain a franchise agreement that will support a feasible business plan.”

CenturyLink is saying that if Comcast has the resources to obstruct and delay legitimate competition now, merging with second-largest cable company Time Warner would give the giant company the ability to block virtually any competitors.

If federal authorities were to allow Comcast-Time Warner to merge, CenturyLink asks that the FCC to institute a series of conditions: disclose prices; make content available to competitors; allow competitors to easily substitute their service for Comcast’s to customers who wish to switch.

Comments of CenturyLink, Inc. (FCC filing, Aug. 25, 2014)

Comcast allegedly trying to block CenturyLink from entering its territory (Ars Technica, Aug. 26, 2014)