Office of Consumer Counsel v. Southern New England Telephone Co.

502 F. Supp. 2d 277, 2007 U.S. Dist. LEXIS 53461, 2007 WL 2122020
CourtDistrict Court, D. Connecticut
DecidedJuly 25, 2007
Docket3:06cv1106 (JBA)
StatusPublished
Cited by8 cases

This text of 502 F. Supp. 2d 277 (Office of Consumer Counsel v. Southern New England Telephone Co.) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Office of Consumer Counsel v. Southern New England Telephone Co., 502 F. Supp. 2d 277, 2007 U.S. Dist. LEXIS 53461, 2007 WL 2122020 (D. Conn. 2007).

Opinion

RULING ON MOTIONS TO DISMISS [DOCS. ## 37, 39, 42, 45]

JANET BOND ARTERTON, District Judge.

This declaratory and injunctive relief action originated as two separate lawsuits. The first was brought by the Office of Consumer Counsel (“OCC”), an independent office within the Connecticut Department of Public Utility Control charged to act as an advocate for consumer interests in matters that may affect ratepayers with respect to public service companies, and the New England Cable and Telecommunications Association, Inc. (“NECTA”), a nonprofit corporation and trade association that represents the interests of most cable operators holding franchises in Connecticut, against Southern New England Telephone Company, doing business as AT & T Connecticut, Inc. (“AT & T”) and the Department of Public Utility Control of the *280 State of Connecticut (the “DPUC”) (Case No. 06evll06). The second action was brought by Cablevision of Connecticut, L.P., Cablevision of Southern Connecticut, L.P., and Cablevision of Litchfield, Inc. (collectively, “Cablevision”) against the DPUC (Case No. 06cvll07). Both cases focus on the issue of whether a proposed new service offered by AT & T falls within the definition of “cable service” under the Cable Communications Policy Act of 1984 (“Cable Act”), as amended, 47 U.S.C. § 521 et seq., 1 thus subjecting AT & T to cable regulation in Connecticut, and challenging the DPUC’s determination that AT & T’s new service did not fall within the federal “cable service” definition. See OCC/NECTA Compl., Case No. 06evll06 [Doc. # 1]; Cablevision Compl., Case No. 06cvll07 [Doc. # 1]. Jurisdiction is claimed under 28 U.S.C. § 1381, on the basis that the action arises under federal law, specifically, the Supremacy Clause, the First Amendment, and the Fourteenth Amendment of the United States Constitution, and various provisions of the federal Cable Act. Currently pending before the Court are the Motions to Dismiss by defendants DPUC and AT & T, primarily for lack of standing and ripeness [Docs. # 37, 39, 42, 45], For the reasons that follow, the Motions to Dismiss will be granted in part and denied in part.

I. Factual Background

The plaintiffs’ Complaints allege that AT & T (formerly SBC, and before that, SNET), “is planning to enter the cable television service business in Connecticut, but would like to do so without being subject to the many regulatory burdens that apply to existing cable companies such as Cablevision [and NECTA’s members].” Cablevision Compl. ¶ 1. “Advances in technology have changed the way in which current cable television operators, such as [plaintiffs], provide video programming service to subscribers. What once may have been fairly passive, one-way networks used to deliver signals to residential subscribers are now advanced, two-way networks that involve complex internal system interactions to monitor and manage the provision of service. Changes in law and technology are also leading existing telephone companies, like Defendant AT & T, to seek to use their networks and lines to offer residents packages of video programming channels like and in competition with those offered by current cable operators.” OCC/NECTA Compl. ¶ 1. Plaintiffs claim that “AT & T’s proposed service will be nearly identical to today’s cable service from a subscriber perspective, with the same television channels (ABC, CNN, ESPN, etc.), the same sort of on-screen program guide, and the same video-on-demand and similar features available from cable operators today. Like [plaintiffs], AT & T will transmit video programming one-way, from its network to subscribers. Nonetheless, AT & T claims that its proposed television service is somehow not a ‘cable service’ because of a certain technology difference, invisible to subscribers, between the technology AT & T will use in connection with the transmission of channels to subscribers (called ‘switched’ video transmission) and the technology that existing cable companies have generally used in connection with this transmission (which AT & T calls ‘broadcast’ video transmission).” Cablevision Compl. ¶ 1.

The DPUC, “hearing of AT & T’s plans, opened a proceeding to consider whether AT & T’s proposed new service fits the Federal definition of ‘cable ser *281 vice,’ and therefore should be subject to cable regulation in Connecticut. The DPUC accepted AT & T’s argument and, based on its interpretation of Federal law, ruled in AT & T’s favor.” Id. ¶2. As “AT & T has publicly stated that it will begin offering its Video Service in Connecticut without any cable regulation in the near future,” OCC/NECTA Compl. ¶ 3 (also alleging that AT & T stated it might be “as early as the fourth quarter of 2006), plaintiffs “ask the Court to clarify and declare the proper federal law classification of the services and networks currently being deployed and used by existing cable operators, and new video programming entrants, like AT & T. In light of [defendant AT & T’s proposed video programming service and changes in the marketplace, [plaintiffs seek a declaration that the provision of video programming that includes programming that is pre-scheduled by the video programming provider is not and cannot be ‘interactive on-demand service’ under federal law. Plaintiffs seek a declaratory judgment that the video programming service and associated network to be provided by [defendant AT & T constitutes a ‘cable service’ provided over a ‘cable system’ by a ‘cable operator’ under federal law.” Id. ¶ 2. Plaintiffs contend that “[b]y relieving AT & T of cable regulatory requirements, [the DPUC] has undermined the Federal regulatory framework for cable television established by Congress, provided AT & T an unfair competitive advantage over existing cable companies, and left Connecticut’s consumers without any of the Federal framework’s protections.” Ca-blevision Compl. ¶ 4. According to plaintiffs’ Supplemental Submission [Doc. # 75], filed after briefing on defendants’ Motions to Dismiss concluded, AT & T announced on December 27, 2006 that it was beginning to offer its “U-verse” video programming service in areas in Connecticut; according to AT & T statements and press reports, as of January 2007 the service was available in neighborhoods in at least nine towns and cities across the state. See Suppl. Sub. at 2 & n. 2.

Accordingly, the OCC/NECTA Complaint advances the following claims: Count 1 seeks a judicial determination that the DPUC’s decision is invalid as preempted by the Cable Act, that AT & T’s proposed video service does constitute a “cable service” being offered over a “cable system” by a “cable operator,” and that AT & T must therefore obtain a cable franchise prior to providing its service in Connecticut, see OCC/NECTA Compl. ¶¶ 38-56; Count 2 seeks a declaration that because the DPUC’s decision is preempted, AT &

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502 F. Supp. 2d 277, 2007 U.S. Dist. LEXIS 53461, 2007 WL 2122020, Counsel Stack Legal Research, https://law.counselstack.com/opinion/office-of-consumer-counsel-v-southern-new-england-telephone-co-ctd-2007.