News
The Federal Communications Commission (FCC) may have given Verizon a pass on retention marketing activities that a trio of MSOs formally complained about, but the cable industry is trying to keep the pressure on.
Last year, Verizon began to offer incentives to subscribers who were in the process of switching to other phone providers. Cable complained that Verizon’s actions were unfair and violated subscriber privacy. The Enforcement Bureau of the FCC let Verizon off on technicalities, noting that current policy is ambiguous and should be clarified (story here).
The American Cable Association (ACA) wants to make sure that the FCC doesn’t sweep the issue under the rug. “We are certainly disappointed in the recommendation and anxious for the Commissioners to look at the issue and reach their own conclusion,” said Matthew Polka, ACA president and CEO.
“Verizon has made a practice out of operating in the grey area of the law in an effort to stymie the growth of new entrants in the marketplace,” Polka continued. “We are hopeful the Commission will clarify that grey area and restore balance and competition to the marketplace.”
The Bureau’s decision is in response to a formal complaint filed against Verizon in February by a number of cable providers, alleging that the telco was marketing to customers after the time in which the subscriber chose to leave Verizon, but before the customers’ phone number was ported to the customers’ new service provider.
The complaint specifically cited the Communications Act of 1934, which prevents the use of information provided by one provider to another for a specific purpose to be used for a different purpose.
The FCC has yet to rule on a countercharge filed by Verizon against several cable companies that they are impeding the process of cable video subscribers switching to video services provided by Verizon (story here).
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