Globalcomm: Cox exec says c’mon, play fair

Chicago--The Bell companies blew their competitive chances by not building out video networks in the wake of the Telecommunications Act of 1996 and shouldn’t be looking for regulatory “sweetheart deals and shortcuts” to help them now, Cox Communications’ President Patrick Esser told a Globalcomm audience today.

Citing Cox’s decision to borrow $15 billion to build out its voice, data and video network in the post-reform period, with no guarantee of success, Esser said his company’ entrepreneurial spirit and trusted customer relationships will enable it to compete against anything telephone or satellite companies dream up.

“We’ve faced competition on every product line, from direct broadcast satellite, DSL, Skype and others,” he said. “We have had competition since DirecTV first launched its service. The RBOCs’ claims that they are bringing competition to video service are laughable.”

The 1996 Act had “a road map for the Bells to deliver video” but instead, they have left a path “littered with press releases that boast of a fiber-optic future,” Esser said.

Now, the Bell companies are pushing for national video franchise rules, he said.

“I’m all for less cumbersome, streamlined franchise rules, but they need to be applied immediately and evenly to everyone,” Esser added.

The Cox executive also touted his company’s service record, noting its many J.D. Power & Associates awards and its success selling bundled services. Today, more than half of Cox’s 5.9 million customers buy two services, and more than a million buy voice, data and video from Cox. In the 10 years since the 1996 reform act, Cox has become the 10th-largest telephone company in the U.S. Nearly half of its $7 billion in revenue comes from non-cable services, Esser said.

“I will bet on Cox’s ability to win over customers in the future,” he said.