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FOR IMMEDIATE RELEASE: NEWS MEDIA CONTACTS:
June 27, 2012 Tammy Sun/Neil Grace
(202) 418-0505/(202) 418-0506
tammy.sun@fcc.gov/neil.grace@fcc.gov
FCC RESOLVES INVESTIGATION OF COMCAST-NBCU BROADBAND-RELATED MERGER
CONDITIONS; ENSURES CONSUMER ACCESS TO
REASONABLY PRICED BROADBAND INTERNET SERVICE
Comcast Agrees to Unprecedented Extension of "Standalone" Broadband
Service Condition;
Will Pay $800,000 as Part of Merger Settlement
Washington, DC -- Today, the Enforcement Bureau of the Federal
Communications Commission adopted a consent decree resolving the FCC's
investigation of Comcast Corporation's compliance with certain
broadband-related merger conditions imposed by the Commission's Order
approving the Comcast-NBCU transaction. The Bureau specifically negotiated
an unprecedented year-long extension of the merger condition requiring
Comcast to offer a reasonably priced broadband option to consumers who do
not receive their cable service from the company. In addition, Comcast
will pay an $800,000 voluntary contribution to the U.S. Treasury as part
of the settlement.
FCC Chairman Julius Genachowski said, "Today's action demonstrates that
compliance with Commission orders is not optional. The remedies announced
today will benefit consumers and foster competition, including from online
video and satellite providers, by ensuring that standalone broadband is
truly available in Comcast's service areas. I am pleased we were able to
resolve this issue."
FCC Enforcement Bureau Chief Michele Ellison said, "This Consent Decree is
a huge win for consumers. It reinforces and extends the terms of the
Commission's merger order to ensure that consumers have reasonably priced
standalone broadband Internet options, as the Commission originally
intended." Ms. Ellison also stated, "The unprecedented merger condition
extension, significant voluntary contribution, and robust compliance plan
send a clear message to the American public and the communications
industry that the FCC will vigorously enforce its merger conditions, to
the ultimate benefit of consumers."
Among other conditions in the Comcast-NBCU Order, the Commission required
Comcast to continue to offer standalone broadband Internet access services
at reasonable prices and with sufficient bandwidth to customers who do not
subscribe to Comcast's video cable services. Specifically, the Commission
required Comcast to offer standalone broadband services on terms
equivalent to packages that bundle broadband and video cable service.
Comcast was ordered to offer a broadband service with a download speed of
at least 6 mbps at a price no greater than $49.95 for three years. The
Commission also prohibited Comcast from raising prices on the required
broadband service for two years. Finally, Comcast had to "visibly offer
and actively market" standalone broadband Internet access service to
highlight the availability of this special service and other standalone
broadband services.
After receiving information suggesting that Comcast was not adequately
marketing its standalone broadband services, the Bureau thoroughly
investigated Comcast's compliance with the merger condition. Comcast
responded fully to the Bureau's investigation. Ultimately, the Bureau and
Comcast reached agreement to address the Bureau's concerns, resulting in
today's consent decree.
Under the terms of the consent decree, Comcast must continue to offer its
"Performance Starter" service until at least February 21, 2015,
representing a one-year extension beyond the requirement in the
Comcast-NBCU Order. This is the first consent decree in FCC history
extending a merger condition. Consumers will directly benefit from the
greater availability of this reasonably priced broadband option,
potentially worth many millions of dollars in savings to consumers.
Comcast also must pay $800,000 to the U.S Treasury.
In addition, the consent decree imposes a detailed compliance plan
requiring Comcast to undertake numerous actions, including the following:
* training its customer service representatives and retail sales
personnel to reinforce their awareness and familiarity with the
Performance Starter service;
* ensuring that new and existing Comcast customers have equal access to
a web page devoted exclusively to describing and permitting online
purchase of all retail standalone broadband Internet service options;
* listing the Performance Starter service tier on product lists issued
to Comcast customers;
* conducting a major advertising promotion of Comcast's standalone
retail broadband Internet access service offerings in 2013; and
* continuing to offer the Performance Starter service at its owned and
operated retail locations and offering its third-party retail agents
and independent dealers the opportunity to sell the Performance
Starter broadband service.
Ms. Ellison added, "I'd like to thank the staff for their hard work and
professionalism in connection with this historic settlement and
acknowledge Comcast's cooperation and willingness to ensure that the
benefits of the merger condition are fully realized."
For further information, please contact Jeffrey Gee, Deputy Chief,
Investigations and Hearings Division, Enforcement Bureau, FCC,
202-418-1420.
Please direct media inquiries to Tammy Sun at 202-418-0505 or Neil Grace
at 202-418-0506.
--FCC--
News and other information about the FCC is available at www.fcc.gov.
Applications of Comcast Corporation, General Electric Company, and NBC
Universal, Inc. for Consent to Assign Licenses and Transfer Control of
Licenses, Memorandum Opinion and Order, 26 FCC Rcd 4238, 4362-63, Appendix
AS: IV.D (1)-(3) (2011) (Comcast-NBCU Order). The Comcast-NBCU Order
approved the assignment and transfer of control of various FCC licenses
from General Electric Company to Comcast, allowing creation of a joint
venture between NBC Universal, Inc. and Comcast.
See id. at 4362.
News media Information 202 / 418-0500
TTY 202 / 418-2555
Fax-On-Demand 202 / 418-2830
Internet: http://www.fcc.gov
ftp.fcc.gov
Federal Communications Commission
445 12th Street, S.W.
Washington, D. C. 20554
This is an unofficial announcement of Commission action. Release of the
full text of a Commission order constitutes official action. See MCI v.
FCC. 515 F 2d 385 (D.C. Circ 1974).
NEWS