Comcast to pay $800,000 to resolve FCC stand-alone broadband complaint

27.06.2012
Comcast will pay US$800,000 and agree to a yearlong extension of a requirement to provide inexpensive stand-alone broadband service after a U.S. Federal Communications Commission investigation into the company's compliance with conditions on its 2011 merger with NBCUniversal.

Comcast was not adequately marketing its stand-alone broadband services as required in the FCC merger conditions, the FCC said. The FCC's Enforcement Bureau, in a consent decree announced Wednesday, requires Comcast to continue to offer its Performance Starter service until Feb. 21, 2015, and make the $800,000 payment to the U.S. Treasury, the FCC said in a press release.

Under the merger conditions, the FCC required Comcast to continue to offer stand-alone broadband Internet access services at reasonable prices and with sufficient bandwidth to customers who do not subscribe to Comcast's cable services. The conditions required Comcast to offer broadband with download speeds of at least 6M bps for less than $50 for three years.

The conditions also required Comcast to "visibly offer and actively market" the stand-alone broadband service.

The consent decree shows that "compliance with commission orders is not optional," FCC Chairman Julius Genachowski said in a statement. "The remedies announced today will benefit consumers and foster competition, including from online video and satellite providers, by ensuring that stand-alone broadband is truly available in Comcast's service areas."

The consent decree is a "huge win" for consumers, FCC Enforcement Bureau Chief Michele Ellison said in a statement.