"Unfortunately, the merger condition requiring Charter to overbuild other providers has undermined plans to provide improved services and reach new customers", they wrote. But half of those households had to already be served by another broadband internet provider, forcing the cable giant to compete. Charter was to provide broadband internet access to two million new customers within five years, including one million that already have access to another broadband service-a process referred to as "overbuilding".
Pai, who also blocked the expansion of subsidized broadband services to low-income Americans, argued the condition "was not and is not in the public interest, and it runs directly against the goal of promoting greater Internet access for all Americans".
Shares of Charter Communications (NASDAQ:CHTR) traded up 1.09% during mid-day trading on Tuesday, hitting $331.85.
"Following our decision today, Charter.is still obligated to build out to two million new locations", Pai explained.
The LA cable market, 2013, was neatly divided between Charter *or* Time Warner Cable, with barely any overlap between them.
"These companies would have had to divert resources away from expanding their networks or improving overall quality of service to pay for additional marketing and advertising to avoid customer losses to Charter", O'Rielly says.
But smaller cable companies worry about that competition. But by modifying the merger agreement, the FCC signaled that it wants Charter to focus its expansion on rural areas that now lack high-speed Internet service.
The reversal is the latest in a slew of measures at the FCC that benefit the telecom industry. The FCC's new chairman, Ajit Pai, supported a move by Congressional lawmakers to undo an FCC rule that would force ISPs to gain customer consent before selling browsing data. She said she anxious that Charter would wind up being the only broadband provider in those areas in the long term.
The original decision was part of the terms of approval the FCC placed on Charter's merger with Time Warner Cable. Charter did not immediately respond to a request for comment. This is like telling two people you will buy them lunch, ordering two entrées, and then sending both to just one of your companions. "You can't close the digital divide without dealing with the price issue", she said. Incumbent cable companies don't have to compete. "As we work to ensure that all Americans have access to broadband, we should focus on targeting service to areas that are truly unserved, not attempting to manufacture competition through government mandated buildout".