Comcast Cable Communications, Inc.

Comcast's comments focus on demonstrating the success of current regulatory restraint in shaping a competitive broadband market, thus cable Internet services should remain unregulated.

• Both the federal government and the state of Michigan have adopted a policy of regulatory restraint with respect to the Internet and the technologies that provide access.

  The FCC has consistently demonstrated regulatory restraint with respect to information services and believes such restraint has significantly facilitated the explosive growth of the Internet. In addition, the FCC has regularly requested that state and local governments mirror its policy of regulatory restraint. To date, at least fourteen state governments have considered the issue now being studied by the MPSC and have concluded that deference to the FCC's national policy of regulatory restraint is appropriate.

• Regulatory restraint is creating a robust information infrastructure

  The market for Internet access services is already intensely competitive, and still more competition is coming. Several distinct technologies are being used, and others are being readied, to meet burgeoning consumer demand for Internet access. The broadband Internet service is already a competitive business and the prospects for continuing growth of broadband competition are bright. The regulatory restraints and market forces are working. With major international corporations such as Ameritech, GTE, AT&T, MCI, Sprint, and TCI investing hundred millions of dollars in the state, Michigan have one of the best telecommunication infrastructures in the country. This development has been attributed to the flexible regulatory framework established by the MTA and the 1995 amendments to the MTA which allowed full deregulated competition among service providers.

• Comcast has invested in the state of Michigan beacuse of regulatory restraint

  With the regulatory restraint in the MTA, Comcast has spent more than two billion dollars expanding its presence in Michigan through the purchase of AT&T and Adelphia cable system in the southeast portion of the state. It also has invested six hundred billion dollars upgrading its Michigan cable system. As a consequence of the significant investment made by Comcast, residents in southeast Michigan enjoy some of the most advanced, lowest-cost cable communication systems in the country. Continuing down the path of regulatory restraint will drive market forces, which in turn will continue to drive significant investments in Michigan's information infrastructure.

• If regulatory uncertainty develops, continued investment in Michigan's telecommunications infrastructure will be placed at risk.

  Comcast, like other companies, has invested in this state largely because of its stable regulatory environment. If the regulatory environment on this issue changes in the state of Michigan, however, potential new investments by companies will likely shift to other states. Investment will naturally flow to the area where there is greatest chance of earning a fair rate of return. Requiring companies like Comcast to share their facilities with competitors on government-mandated terms will simply make Michigan a less attractive place in which to do business and slow the pace of investment.

• State goverments cannot legally require access to broadband transport facilities

  1.FCC is asserting jurisdiction in this matter

  The imposing of access requirements at the local level is inconsistent with federal law. As noted by FCC, it is the only agency that exercises jurisdiction over all of the current providers of broadband access to the Internet. Regardless of whether deference is extended by the states, the FCC has made it clear that it will attempt to preempt any state policy that is inconsistent with its own.

2.Access regulation of cable Internet service would also violate the First Amendment

Cable operators are entitled to the protection of the speech and press provision of the First Amendment. The U.S. District Court for the Southern District of Florida- in a case involving Comcast's Broward County cable system- recently ruled that forced access requirements imposed on cable operators by Broward County violated the cable operators' First Amendment editorial discretion.

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