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Before the Public Utilities Commission of the State of California

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Before the Public Utilities Commission of the State of California BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Joint Application of Comcast Corporation, Time Warner Cable Inc., Time Warner Cable Information Services (California), LLC, and Bright House Networks Information Services (California), LLC for Application 14-04-013 Expedited Approval of the Transfer of Control of (Filed April 11, 2014) Time Warner Cable Information Services (California), LLC (U-6874-C); and the Pro Forma Transfer of Control of Bright House Networks Information Services (California), LLC (U-6955-C), to Comcast Corporation Pursuant to California Public Utilities Code Section 854(a). Joint Application of Comcast Corporation, Time Warner Cable Information Services (California), Application 14-06-012 LLC (U6874C) and Charter Fiberlink CA-CCO, (Filed June 17, 2014) LLC (U6878C) for Expedited Approval to Transfer Certain Assets and Customers of Charter Fiberlink CA-CCO, LLC to Time Warner Cable Information Services (California), LLC, Pursuant to Public Utilities Code Section 851. BRIEF OF THE WRITERS GUILD OF AMERICA, WEST INC. Laura Blum-Smith Writers Guild of America, West, Inc. 7000 West Third Street Los Angeles, CA 90048 Telephone: (323) 782-4688 E-mail: [email protected] December 10, 2014 TABLE OF CONTENTS I. SUMMARY AND INTRODUCTION ................................................................................. 7 II. WRITERS GUILD OF AMERICA, WEST ....................................................................... 9 III. STANDARD OF REVIEW ................................................................................................. 11 IV. PROPOSED TRANSACTIONS ......................................................................................... 12 V. TRANSFERS DO NOT ENHANCE BROADBAND GOALS IN CALIFORNIA ........ 13 A. Transfers Reduce Benchmark Competition and Potential Overbuilding .......................... 14 B. Transfers Reduce Quality of Broadband in California by Eliminating TWC’s Pro- Consumer Broadband Offerings ............................................................................................... 15 C. Transfers are Not Needed To Enable Broadband Investment and Upgrades ................... 19 D. Transfers Do Not Enhance Competition ............................................................................ 20 VI. TRANSFERS WILL HARM UPSTREAM CONTENT MARKETS ............................ 22 A. The OVD Market is National ............................................................................................. 23 B. The OVD Market has Expanded Creative and Economic Opportunities and Enhanced Consumer Choice ...................................................................................................................... 25 C. The Proposed Transfers will Increase Comcast’s Ability and Incentive to Harm Competition in OVD Market ..................................................................................................... 26 D. Comcast’s Ability to Harm the OVD Market will Have a Disproportionate Impact in California .................................................................................................................................. 30 VII. TRANSFERS DO NOT PROMOTE BROADBAND ACCESS FOR UNSERVED AND UNDERSERVED COMMUNITIES ......................................................................................... 34 VIII. CONDITIONS ................................................................................................................... 37 A. Preserve Affordable, Standalone Broadband Offerings .................................................... 37 B. Enhance Internet Essentials ............................................................................................... 38 C. Municipal Broadband ........................................................................................................ 40 D. Network Neutrality ............................................................................................................. 41 E. Resolution of Existing Franchise Fee Disputes ................................................................. 42 IX. CONCLUSION .................................................................................................................... 43 1 TABLE OF AUTHORITIES Public Utilities Code California Public Utilities Code §854(c)(6) .................................................................................. 11 California Public Utilities Code §854(c)(8) .................................................................................... 9 California Public Utilities Code §854(e) ...................................................................................... 11 Federal Communications Commission Comments of Institute for Local Self-Reliance, Common Cause, Center for Media Justice, Media Mobilizing Project, National Hispanic Media Coalition, Public Knowledge, Writers Guild of America, West, Benton Foundation, The Utility Reform Network (TURN), Hon. Tommy Wells, Hon. David Grosso, FCC WC Docket No. 14-115 and FCC WC Docket No. 14-116 ............ 38 Comments of the Minnesota Association of Community Telecommunications Administrators (MACTA), FCC MB Docket No. 14-57, August 25, 2014 ........................................................ 39 Comments of the National Association of Telecommunications Officers and Advisors, FCC MB Docket No. 14-57 ...................................................................................................................... 41 Comments of the New York Public Service Commission, FCC MB Docket No. 14-57, August 25, 2014 ........................................................................................................................................... 18 Comments of the Office of the Mayor of the City of Los Angeles, FCC MB Docket No. 14-57, August 25, 2014 .................................................................................................................. 30, 42 In the Matter of Applications for Consent to the Assignment and/or Transfer of Control of Licenses from Adelphia Communications to Time Warner Cable, Memorandum Opinion & Order, 21 FCC Rcd 8203 ............................................................................................... 15, 19, 24 In the Matter of Applications of AT&T Inc. and DirecTV for Consent to Assign or Transfer Control of Licenses or Authorizations, FCC MB Docket No. 14-90, June 11, 2014 ................ 28 In the Matter of Applications of Comcast Corp. and Time Warner Cable Inc. for Consent to Transfer Control of Licenses and Authorizations, FCC MB Docket No. 14-57, April 8, 2014 ....................................................................................................................................... 12, 13, 33 In the Matter of Applications of Comcast Corp. and Time Warner Cable Inc. for Consent to Transfer Control of Licenses and Authorizations, FCC MB Docket No. 14-57, Gregory L. Rosston and Michael D. Topper, “An Economic Analysis of the Proposed Comcast-Time Warner Cable Transaction,” April 8, 2014 ................................................................................. 8 In the Matter of Applications of Comcast Corp. and Time Warner Cable Inc. for Consent to Transfer Control of Licenses and Authorizations, FCC MB Docket No. 14-57, Mark A. Israel, “Economic Analysis of the Effect of the Comcast-TWC Transaction on Broadband: Reply to Commenters,” September 22, 2014 ........................................................................................... 27 In the Matter of Applications of Comcast Corporation and AT&T Corp. For Consent to the Transfer of Control of Licenses, Memorandum Opinion and Order, FCC MB Docket No. 02- 70, November 13, 2002 ............................................................................................................. 19 2 In the Matter of 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, FCC MB Docket No. 10-56, January 20, 2011 ..... 12, 27, 38 In the Matter of General Motors Corporation and Hughes Electronics Corporation, Transferors, and The News Corporation Limited, Transferees, For Authority to Transfer Control, FCC MB Docket No. 03-124, January 14, 2004 ....................................................................................... 24 Joint Petition to Deny of Future of Music Coalition and Writers Guild of America, West, Inc., FCC MB Docket No. 14-57, August 25, 2014 .......................................................................... 17 Opposition to Petitions to Deny and Response to Comments of Comcast Corporation and Time Warner Cable, Inc., In the Matter of Applications of Comcast Corp. and Time Warner Cable Inc. for Consent to Transfer Control of Licenses and Authorizations, FCC MB Docket No. 14- 57, September 23, 2014 ................................................................................................. 12, 16, 19 Petition to Deny of Free Press, FCC MB Docket No. 14-57, August 25, 2014 ..................... 13, 28 Petition to Deny of Los Angeles County, California; Montgomery County, Maryland; The City of Portland, Oregon; and the Ramsey-Washington Counties (MN) Suburban Cable Communications Commission, FCC MB Docket No. 14-57, August 25, 2014 .................. 15, 35 Petition to Deny of Public Knowledge, FCC MB Docket No. 14-57, August 25, 2014 ......... 15, 19 Department of Justice United States v. AT&T, No. 1:00-cv-01176 (D.D.C. May 25, 2000) ....................................
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