FCC To Verizon: Don't Talk Voice Customers Out Of Switching To Cable

Cable TV companies complained that Verizon offered discounts and other promotions to keep consumers in the telco's fold.

W. David Gardner, Contributor

June 20, 2008

1 Min Read

The Federal Communications Commission is scheduled to ask Verizon Communications to cease trying to talk customers from switching their Verizon phone service to cable providers.

Comcast, Time Warner Cable, and Bright House had complained earlier in the year that Verizon used information about consumers planning to switch their phone service away from Verizon. The cable companies maintained that after Verizon learned that a consumer was planning to switch to a cable company, Verizon would offer discounts and other promotions to keep the consumer in the Verizon fold.

The FCC was scheduled to vote on the complaint Friday, and several news reports, all citing leaks from the FCC, said the commissioners would rule against Verizon on the issue.

Replying to the cable company charges, Verizon executive VP Tom Tauke said the company was simply providing information on its services and that is a way of offering choice to subscribers. "Saying that consumers cannot be provided full information about competing options and prices would harm competition and create an unlevel playing field," Tauke told reporters.

The issue has caused divisions in the FCC. In May, the FCC's enforcement bureau asked that the cable companies' complaint be dismissed, and FCC Chairman Kevin Martin supported the enforcement bureau's opinion.

However, Republican commissioner Robert McDowell reportedly planned to join the two Democratic commissioners and vote in favor of the cable companies.

Earlier this year, Verizon attempted to turn the tables on cable companies by asking the FCC to smooth the way for consumers to switch their TV service from cable companies to phone companies.

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