Comcast And Time Warner Merger: Net Neutrality and What Will Happen to Customers
Comcast merged with Time Warner Cable (TWC); the deal is estimated to be worth $45 Billion. This merger would make them both the biggest cable companies in the U.S.
As of now, the merger has not been formally submitted to the Federal Communications Commission (FCC), and some people are breathing a sigh of relief, or scared that history will repeat itself with Comcast.
According to CNN, back in 2009 Comcast did not obey FCC regulations when it acquired NBC Universal. Senator Al Franken, Democrat for Minnesota, has been a huge critic of Comcast then and now. Senator Franken told CNN that, since they [Comcast] didn't comply with the previous conditions on the last merger, why wouldn't they do the same thing again.
The current FCC Commissioner Ajit Pai expects to receive something soon. Pai stated that they will have to review the facts, listen to the opinions of people on the outside, and then reach a judgement.
The anticipation before the merger is even enacted, has some people in the telecommunications industry very nervous such as, FIOS, DISH Network, and even Netflix. But most of all it is the customers who are worried.
CBS Money Watch reported the short-term and long-term difficulties that both consumers, as well as TV Networks could face. In the short-term, TWC customers will expect to see a change in their service which should be identical to the operations of Comcast.
For example, Comcast imposes data caps of nearly 300 GBs per month on its customers; while TWC does not, but with this merger, the cap will likely be matched. This could lead to cable black outs.
A cable black out is more about when cable operators and content providers cannot reach a licensing agreement, so the cable companies can either remove certain content, or even an entire channel. This is exactly what happened to CBS last year for several months. But now that there is a larger cable company in the mix, they could have more control and a broader reach over TV and Internet service.
That was the short-term, here is the long-term: this could mean fewer cable providers, fewer internet providers, and possibly higher prices for consumers.
The Guardian reported that former long standing member of the FCC from 2001 to 2011, Michael Copps, can lobby for the consumers and against Comcast. Copps says that this deal is just a far-reaching one, that it could be dead on arrival when it gets to the Department of Justice and the FCC for approval.
Remember back in 2009 when Comcast proposed acquisition of NBC Universal, Copps was the only person that voted "No" on a five person panel against that merger. Unfortunately, Copps was out numbered because some of the panel members were former consultants for Comcast.
And, one of the appointed board members, Meredith Attwell Baker, four months later after the merger left the FCC to work for Comcast, as a Senior Vice President for Government Affairs at NBC Universal.
All of this talk of merger brings up once again the fight over net neutrality. With this merger, it could represent what Copps says could happen -- "the cable-lization of the internet."