Comcast Seeks to Block Bell Atlantic's Wireless Cable Services

Strategic Insights -

Comcast Corp. has asked the Federal Communications Commission to block Bell Atlantic Corp.'s plans to offer wireless cable services in southeastern Pennsylvania, citing federal rules that bar companies from owning interests in both wired and wireless cable systems serving the same community. Comcast's move is aimed at preventing Bell Atlantic from eliminating wireless cable as an independent competitor in the Philadelphia area, where the company has announced plans to upgrade its phone networks with fiber-optic cable for delivery of video services. Comcast also expressed concern that Bell Atlantic's acquisition of CAI Wireless Systems' wireless cable licenses would ultimately lead to the shutdown of wireless cable as a separate entity, reducing competition in the local marketplace.

Key Takeaways:

  • Comcast filed a request with the Federal Communications Commission (FCC) to block Bell Atlantic's plans to offer wireless cable services in southeastern Pennsylvania.
  • The move is based on federal rules that prohibit companies from owning interests in both wired and wireless cable systems serving the same community.
  • Comcast alleges that Bell Atlantic intends to eliminate wireless cable as an independent competitor in the Philadelphia area.
  • Bell Atlantic has announced plans to upgrade its phone networks with fiber-optic cable for delivery of video services.
  • The company has also acquired CAI Wireless Systems' wireless cable licenses, which Comcast claims will lead to the shutdown of wireless cable as a separate entity.
  • Comcast is seeking to prevent Bell Atlantic from violating federal rules and reducing competition in the local marketplace.

Statistics:

  • Comcast has requested the FCC to block Bell Atlantic's plans to offer wireless cable services in southeastern Pennsylvania.
  • Bell Atlantic has invested $100 million in CAI Wireless Systems.
  • Pacific Telesis agreed to buy Cross Country Wireless for about $120 million.
  • US West Inc. has asked the FCC to suspend consideration of its applications for 'video dialtone' services.

Sources:

  • Philadelphia Inquirer, June 2 ( “…Comcast Corp. asked federal regulators Friday to block Bell Atlantic Corp…”)