Charter Lays Out 2 Interconnection Policies—Settlement-Free and 'More Flexible'
Charter Communications' free interconnection policy isn't completely settlement-free. In an ex parte filing posted Wednesday in docket 15-149, Charter said it spelled out its twin interconnection policies: one with settlement-free interconnection through 2018, the other a "long-standing policy that is available to typically smaller entities that may want a more flexible approach," in a conference call between company executives and FCC representatives. Under the second policy, there has and will continue to be free interconnection at times, Charter said, but it also is amendable by the company "and allows a case-by-case approach by which the entities can establish a relationship that accommodates individual needs." The company is seeking FCC approval to buy Bright House Networks and Time Warner Cable.
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Interconnection obligations typically are triggered by a certain scale "just to limit it to serious players," said John Bergmayer, senior staff attorney-Public Knowledge. "So having two policies that make that distinction is not necessarily a bad thing."
Charter declaring itself interconnection-fee-free and announcing last month it would extend that policy to TWC and BHN was seen by many as a pre-emptive move to eliminate what had been a major stumbling block in Comcast's ultimately unsuccessful attempt to buy TWC (see 1507160021). Netflix, a major opponent of the Comcast bid, quickly signed on as a backer of Charter's takeover (see 1507150038).
The copy of Charter's settlement-free Internet interconnection policy that the company filed with the FCC in July said it would interconnect at no charge "with those applicants providing content to Charter customers pursuant to customer-initiated Internet sessions who meet the traffic measurement criteria ... for at least 3 consecutive months" -- that criteria including maintenance of a professional network operations center staffed constantly, and a minimum traffic exchange of 3 Gbps at each Charter point of interconnection.
Netflix backed Charter/TWC/BHN because Charter doesn't have specific requirements in the form of traffic ratios, said Doug Brake, telecom policy analyst with the Information Technology and Innovation Foundation. "In other words, Charter is opening doors for the elephants, but isn’t going to make individual entrances for all the mice," Brake said in an email. "If you are under 3 Gbps you can negotiate a paid arrangement, or, more likely, work with a transit provider who would likely qualify for a settlement-free agreement. This is totally appropriate and not hidden in their first letter, but I could see how there would be misunderstandings for Charter to clarify given the press around Netflix’s support."
Some broadband interconnection issues need resolution before the FCC should sign off on Charter/TWC/BHN, said Commercial Network Services, which earlier this year filed a paid peering complaint against TWC (see 1506240049), in a filing posted Tuesday. "The fundamental flaw of the proposed peering policy is that it is rooted in 'Long Standing' and 'Industry Standard' peering policies of Internet Service Providers who have no obligation to provide their customers open Internet connectivity" the way broadband Internet access service providers do to theirs, CNS said. "It is not appropriate for it to be applied by any Broadband Internet Access Service because it still falls short of providing truly open Internet connectivity to consumers."