Charter Advanced Services (MN), LLC v. Lange

259 F. Supp. 3d 980
CourtDistrict Court, D. Minnesota
DecidedMay 8, 2017
DocketCase No. 15-cv-3935 (SRN/KMM)
StatusPublished
Cited by2 cases

This text of 259 F. Supp. 3d 980 (Charter Advanced Services (MN), LLC v. Lange) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Charter Advanced Services (MN), LLC v. Lange, 259 F. Supp. 3d 980 (mnd 2017).

Opinion

MEMORANDUM OPINION AND ORDER

SUSAN RICHARD NELSON, United States District Judge

I. INTRODUCTION

Before the Court are the parties’ cross-motions for summary judgment [Doc. Nos. 75, 81], and Plaintiffs’ Motion to Exclude the Opinions of Defendants’ Expert Robert Loube-[Doc. No. 91]. For the reasons stated herein, the Court grants Plaintiffs’ summary judgment motion — Defendants’ motion is - correspondingly denied. Because the Court concludes that no issues of material fact exist so as to-preclude summary judgment even if Defendants’ expert’s opinions are considered, the Court denies Plaintiffs’ Daubert motion as moot.

II. BACKGROUND

A. Factual History

Plaintiffs Charter Advanced Services (MN), LLC and Charter Advanced Ser[982]*982vices VIII (MN), LLC (collectively, “Charter Advanced”) are subsidiaries of Charter Communications, Inc. (“Charter”), a national communications company that provides services to residential and business customers — such as cable video, broadband internet access, and voice communications — through its affiliates. (See Compl. [Doc. No. 1] ¶¶ 9, 17; Pis.’ Statement of Undisputed Material Facts [Doc. No. 84] (“SUF”) ¶¶ 1, 2.) Defendant Nancy Lange1 is the Chair of the Minnesota Public Utilities Commission (“MPUC”), and is sued in her official capacity. (Defendants Dan Lip-schultz, John Tuma, Matthew Schuerger, and Katie Sieben are Commissioners of the MPUC, and are also sued in their official capacities.2 (See Compl. ¶¶ 10-14.)

One of the features Charter Advanced offers its customers is real-time, two-way voice calling, which it currently markets as “Spectrum Voice.”3 (See SUF ¶ 2.) Charter Advanced provides this feature using Voice over Internet Protocol (“VoIP”) technology, which transmits voice signals via a broadband internet connection as Internet Protocol (“IP”) data packets. (See id. ¶¶ 4-9.) In contrast, traditional telephone networks (commonly known as the “public switched telephone network” or “PSTN”) provide voice telephony services using “circuit switching” technology, in which a dedicated pathway is established over the line for the duration of a call. (Id. ¶ 15.) To route multiple calls over the same PSTN, traditional telephone providers use a technique known as Time Division Multiplexing (“TDM”). (Id. ¶ 16.)

To effect transmission of voice signals as IP data packets, Charter Advanced provides its Spectrum Voice subscribers with a device known as an embedded Multimedia Terminal Adapter (“eMTA”). (Id. ¶ 10.) The eMTA is housed in the same device as the cable modem that provides access generally to Charter’s broadband internet service. (Id. ¶ 11.) The eMTA alters the format of voice calls between an analog electrical signal — as transmitted by the customer’s handset — and the IP data packets transmitted over Charter Advanced’s cable network. (Id. ¶ 12-14.) When a Charter Advanced customer calls or receives a call from a subscriber of a traditional telecommunications carrier, the call must be converted between IP and TDM — a process commonly referred to as “protocol conversion.” (See id. 1120; Compl. ¶ 21.) Because it offers this capability to interact seamlessly with PSTN networks, Spectrum Voice is an “interconnected” VoIP service. Although not all Spectrum Voice calls involve protocol conversion, the majority of Charter Advanced’s voice traffic in Minnesota currently does so. (SUF ¶ 23.)

In addition to providing voice transmission, Spectrum Voice has the capability to provide customers with several additional communications features. These include .an online web portal (“Voice Online Manager”) that allows customers to access voice-mails as digital audio files, convert voice-mails to text, and forward them via email. (Id. ¶ 26.) Voice Online Manager also offers the ability to review and export call [983]*983logs, maintain lists of contacts associated with call logs and voicemails, and direct numerous calling features, such as specifying a “backup phone” that will ring in the event of an outage, “simultaneous ring” that will cause incoming calls to ring numerous phone numbers at once, call forwarding, selective call blocking, etc. (Id.) Spectrum Voice can also send caller ID information to cable set-top boxes, allowing subscribers with Charter cable video services to display call information on their televisions. (Id. ¶ 27.) Beyond these and other current features, Charter Advanced’s IP infrastructure makes it possible to add new features to Spectrum Voice through software and network equipment changes. (Id. ¶ 27.) Anticipated new features include a “softphone” feature — allowing Spectrum Voice subscribers to access calling features through a tablet or smart-phone app — and a feature designed to identify and block unwanted “robo” calls by simultaneously routing incoming calls to a system that queries dynamic internet-connected databases of known robocalling numbers, terminating calls if it finds a match. (Id. ¶ 35.)

Charter Advanced provides every Spectrum Voice subscriber with access to all current additional communication features. (Id. ¶ 37.) Although subscribers can opt not to activate or utilized certain features, and may obtain the voice calling aspect of Spectrum Voice without its other -features, Charter Advanced would need to have its personnel deactivate those features manually. (Id. ¶¶ 38, 39.) Very few customers request that' Charter Advanced do so. (Id. ¶ 39.) Further, because Charter Advanced must activate a broadband connection to a residence or business in order to implement Spectrum Voice, it is not marketed as a standalone offering, but as a service option for customers who subscribe to Charter’s broadband internet and cable television services. Although a customer could request Spectrum Voice without internet or cable, and Charter Advanced would supply it, such requests are “exceedingly rare.” (Id. ¶¶ 40-42.)

B. Procedural History

Prior to March 2013, Charter offered VoIP services in Minnesota through two affiliates — Charter Fiberlink CCO, LLC and Charter Fiberlink CC VIII, LLC (collectively, “Charter Fiberlink”). (Comp. ¶ 26;) In March 2013, Charter Fiberlink assigned its retail voice customers to the newly-established Charter Advanced. (Id. ¶ 27.) The frank purpose behind the assignment was to limit the reach of state regulation, thereby enhancing Charter’s market competitiveness. (See Tweeten Aff. [Doc. No. 78], Ex. 9 (“Moore Dep.”X at 25:3-6, 27:11-19.) Charter Fiberlink notified its subscribers in writing of the change a month ahead of time and advised them that théy could accept the revised terms by continuing their service. (Compl. ¶ 27.)

The Minnesota Department of Commerce (“MDOC”) responded to Charter’s realignment on September 26, 2014, by filing a complaint with the MPUC. (Id. ¶28.) The complaint raised fiftéen separate allegations, including that Charter Advanced was in violation of several Minnesota statutes. (See Tweeten Aff., Ex. 1 (“MDOC Compl.”) at 13-14.) Charter Advanced responded, in part, by arguing that state regulation of Spectrum Voice is preempted by federal law. (See Tweeten Aff., Ex. 2 (“MPUC Order”) at 2.) The MPUC issued an order on July 28, 2015, finding that state regulation is not preempted. (See generally id.)

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Bluebook (online)
259 F. Supp. 3d 980, Counsel Stack Legal Research, https://law.counselstack.com/opinion/charter-advanced-services-mn-llc-v-lange-mnd-2017.