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FCC Conditions Include Offering Standalone Internet Access Service: Source

Under JV Draft Approval, Comcast Would Have To Offer Minimum Speed Of 6 Mbps Downstream

John Eggerton -- Multichannel News, 1/12/2011 3:36:21 PM

According to the current Federal Communications Commission draft approval of the Comcast/NBC Universal joint venture, the cable company will be required to deliver standalone Internet access for at least three years at a monthly base price of $49.95 and a minimum speed of 6 Mbps downstream.

A source with access to the FCC's draft of its conditional approval of the Comcast/NBCU deal confirmed reports that it is one of the conditions, but also pointed out that was one of the original conditions with which Comcast has said it has no quarrel.

While that is certainly a form of unbundling condition, and a temporary price cap, it is one Comcast can apparently live with.

That should not be a surprise because the condition says Comcast will "continue" to provide that stand-alone service. In essence the condition "enshrines" what Comcast already does, though with a speed and price point that one communications lawyers said was unusual to fashion in a deal condition.

In addition, Comcast will have an opportunity to petition the FCC to lift any condition if it can show that a changed marketplace warrants it.

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