Comcast 2015 Annual Report Download - page 31

them with a competitive advantage. For example, some companies and municipalities are building advanced
fiber-based networks that provide very fast Internet access speeds, and wireless Internet technologies con-
tinue to evolve rapidly to allow for greater speed and reliability. We expect other advances in communications
technology to occur in the future. If we choose technology or equipment that is not as effective or attractive
to consumers as that employed by our competitors, if we fail to employ technologies desired by consumers
before our competitors do so, or if we fail to execute effectively on our technology initiatives, our businesses
and results of operations could be adversely affected. We also will continue to incur additional costs as we
execute our technology initiatives, such as the deployment of DOCSIS 3.1, X1 set-top boxes, wireless gate-
ways and Cloud DVR technology, and there can be no assurance that we can execute on these and other
initiatives in a manner sufficient to grow or maintain our revenue or to compete successfully in the future. We
also may incur increased costs if changes in the products and services that our competitors offer require that
we offer certain of our existing services or enhancements at a lower or no cost to our customers or that we
make additional research and development expenditures.
We are subject to regulation by federal, state, local and foreign authorities, which may impose
additional costs and restrictions on our businesses.
Federal, state and local governments extensively regulate the video and voice services industry, and more
recently, Internet services. We expect that legislative enactments, court actions and regulatory proceedings
will continue to clarify, and in some cases may adversely affect, the rights and obligations of cable operators
and other entities under the Communications Act and other laws. Our broadcast television business is also
highly regulated by federal laws and regulations. Our cable networks, filmed entertainment and theme parks
businesses are also subject to various other laws and regulations at the international, federal, state and local
levels, including laws and regulations relating to environmental protection, which have become more stringent
over time, and the safety of consumer products and theme park operations. In addition, we are subject to the
NBCUniversal Order and the NBCUniversal Consent Decree, which have imposed numerous conditions on
our businesses relating to the treatment of competitors and other matters. Failure to comply with the laws
and regulations applicable to our businesses could result in administrative enforcement actions, fines, and
civil and criminal liability. For a more extensive discussion of the significant risks associated with the regu-
lation of our businesses, see Item 1, Business and refer to the “Legislation and Regulation” discussion within
that section.
Changes to existing statutes, rules, regulations, or interpretations thereof, or adoption of new
ones, could have an adverse effect on our businesses.
Legislators and regulators at all levels of government frequently consider changing, and sometimes do
change, existing statutes, rules, regulations, or interpretations thereof, or prescribe new ones, which may
significantly affect our businesses. In addition, the FCC and certain states are becoming more active in con-
sidering rulemakings and legislation, as well as in conducting inquiries and reviews, regarding our services.
Any future legislative, judicial, regulatory or administrative actions may increase our costs or impose addi-
tional restrictions on our businesses, some of which may be significant. For example, as more fully discussed
in Item 1, Business – “Legislation and Regulation,” in 2015, the FCC adopted new open Internet regulations
that reclassify broadband Internet access service as a “telecommunications service,” making it subject to
certain common carriage regulations under Title II of the Communications Act. This change could have a
material adverse effect on our business and results of operations. In addition, in 2015, the FCC adopted an
order that preempted certain state laws that had restricted municipalities from operating municipally owned
broadband networks. The FCC is also considering the appropriate regulatory framework for VoIP service,
including whether that service should be regulated under Title II. Accordingly, the legal and regulatory
environment applicable to our businesses continues to intensify. Any changes to the legal and regulatory
framework applicable to any of our services or businesses could have a negative impact on our businesses
and results of operations.
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