Another major merge between the two largest cable companies is creating a setback, especially for our wallets. Comcast, the nation’s largest cable company wants to buy Time Warner for $45 billion dollars. If this communications merge were to happen, Comcast would shovel 70 million subscribers, which is about 30 percent of television viewers in the United States. So, why is this an issue?
The last time a deal like this was announced was in 2011 when AT&T tried to merge with T-Mobile, which affected the communications infrastructure. That deal fell through when the Department of Justice sued to block the deal. The Department of Justice “argued at the time that the AT&T deal would decrease competition, hurt consumers and squash innovation.”
The Comcast proposal creates another threat, placing a strange hold on several growing businesses such as internet services and broadcast television. Essentially this proposed merger “would create a behemoth of a monopoly, crushing networks, broadcasters and any content provider looking for a path.”
The merger would make Comcast drop stations whenever there was a dispute. The poll found that 52 percent of those surveyed believed that mergers such as the Comcast-Time Warner Cable deal result in less competition and are bad for consumers, while 22 percent believe they allow cable and internet providers to be more efficient and provide better service to consumers.
According to John Quain of Fox News, “A better path would be to encourage high-speed Internet competition from the likes of Google and then see what innovations and improvements the cable companies can offer to compete. They should focus on building better services, not bigger deals.”
As of recent, “Charter would become the second-largest U.S. cable provider by subscribers after adding 1.5 million to its current 4.2 million base, behind Comcast, if the Time Warner Cable deal is approved. Cox Communications Inc. is the third largest”. Also, many assets will be swapped so each company can build certain positions in different geographic regions. In essence, this merge/deal has been in the works for months, it’s about time one of these companies uses communications to seal it up.