360° Coverage : Remedy Suggestions For Comcast-Time Warner Cable

2 Updates
Remedy Suggestions For Comcast-Time Warner Cable
Photo Credit: Forbes Business

Remedy Suggestions For Comcast-Time Warner Cable

Mar 14 2014, 10:34am CDT | by

Lawyers seem confident that Comcast’s $45 billion acquisition of Time Warner Cable will pass muster with antitrust regulators, perhaps as early as the end of the year or as late as 1Q15. Since...

Filed under: news

 
 
 

24 weeks ago

Remedy Suggestions For Comcast-Time Warner Cable

Mar 14 2014, 10:34am CDT | by

Lawyers seem confident that Comcast’s $45 billion acquisition of Time Warner Cable will pass muster with antitrust regulators, perhaps as early as the end of the year or as late as 1Q15. Since Comcast agreed to divest 3 million subscribers upon announcement of the merger in February, and the combined entity’s market share will only be about 40%, remedies to assuage concerns about monopsony and other matters will likely take the form of new consent decrees and alterations to existing ones, two antitrust lawyers said. One of them pointed out that historically, mergers in which market influence and pricing are the matters of antitrust concerns tend to proceed with concessions.

“Comcast’s going to have 19 of the top 25 MSAs (metropolitan statistical areas) in the country where there’s one broadband provider or a limited number,” said Dave Schaeffer, CEO of broadband provider Cogent Communications, among Comcast competitors opposed to the deal. He’s less convinced that the merging cable companies will receive antitrust clearances.

Schaeffer believes opposition is mounting against a Comcast-Time Warner Cable deal and has a better than 50% chance of being quashed, but if it should receive antitrust approval, he listed possible remedies that might satisfy competitors and regulators.

One is additional language to broaden penalties if Comcast should violate consent decrees, said Schaeffer.  Comcast has already broken “the spirit” of the NBC Universal consent decree, the open Internet/net neutrality order in which the Philadelphia-based cable company agreed not to manipulate network traffic to its own advantage, in other words, to treat all network traffic alike, Schaeffer said. “Comcast doesn’t manipulate traffic in the network but before it gets to the network by refusing to increase connectivity to all major global Internet backbone providers.”

He would like to see the addition of transparency tests to ensure that Comcast is honoring the open Internet order. The idea of transparency was part of the original open Internet order created by the Federal Communications Commission in 2010, and revised in the NBC Universal consent decree. It required that Internet service providers disclose network management practices to prohibit discriminating or blocking traffic. Schaeffer would like to ways to “objectively test” Comcast’s disclosures on network transparency and meaningful penalties for failure to comply.

Schaeffer believes consumers ought to have the right to sue broadband providers when they are in breach of contracts and codes. At present, consumers waive these rights when they sign contracts with their network operators and can only arbitrate disputes, ultimately too costly for consumers, said Schaeffer.

Lastly, since the Internet is evolving and it’s possible that Comcast could launch a nationwide competitor to Netflix that would extend beyond its networks, there’s a danger that the cable company will treat its own programming differently from that of competitors, and Comcast should be barred from out-of-territory service, said Schaeffer.

Regulators have considered Comcast to be in compliance with the NBC Universal consent decree and open Internet order since the order’s inception three years ago, noted Sena Fitzmaurice, a spokesperson for Comcast. The company has promised to extend its consent decree to include Time Warner Cable. Comcast’s network practices are already transparent, and the proposed merger with Time Warner Cable will not reduce competition because the two companies have no geographies of overlap. The FCC and National Telecommunications and Information Administration have determined that 87% of households have a choice of two wired broadband providers, she added.

Time Warner Cable declined comment.

Source: Forbes Business

 
Update
2

4 days ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing the workforce ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

5 days ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double traged ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Watch your diet to reduce diabetes risk
London, Sep 3 (IANS) What you eat and drink, and not just the number of calories, is a significant factor in diabetes risk, a study showed.
 
 
2016 NASA asteroid mission awaits your messages
Washington, Sep 3 (IANS) NASA has invited the public to submit short messages and images on social media that could be placed in a time capsule aboard a spacecraft to be launched in 2016 for an asteroid study.
 
 
Exercise can stem frequent night urination in men
New York, Sep 3 (IANS) Men who are physically active are at lower risk of nocturia - waking up at night to urinate, says a study.
 
 
Nippon Life keen to hike stake in Reliance Life
Tokyo, Sep 3 (IANS) Nippon Life Insurance of Japan wants to hike its stake in its Indian joint venture Reliance Life Insurance to 49 percent from 26 percent, when India notifies the decision of higher foreign equity cap in the sector, a news report here said.
 
 
 

Latest from the Network

Watch your diet to reduce diabetes risk
London, Sep 3 (IANS) What you eat and drink, and not just the number of calories, is a significant factor in diabetes risk, a study showed. Losing weight may be good but not enough to prevent Type 2 diabetes as...
Read more on Celebrity Balla
 
35 militants killed in Afghanistan
Kabul, Sep 3 (IANS) At least 35 Taliban militants have been killed in fresh military operations across Afghanistan, the interior ministry said Wednesday. The Afghan National Security Forces (ANSF) carried out...
Read more on Politics Balla
 
Vince Vaughn for The Politician?
Vince Vaughn is set to star in 'The Politician'. The 'Wedding Crashers' star is attached to take on the lead role in the upcoming Columbia comedy about a scandal-hit politician, according to The Hollywood Reporter. The...
Read more on Movie Balla
 
910 militants, 82 soldiers killed in North Waziristan
Islamabad, Sep 3 (IANS) At least 910 militants and 82 Pakistani soldiers have been killed in operation Zarb-i-Azb in North Waziristan, the military said Wednesday. The statement issued by the Inter-Services Public...
Read more on Politics Balla
 
'Headscarf instils positive body image in British Muslim women'
London, Sep 3 (IANS) British Muslim women who wear a hijab (headscarf) generally have a more positive body image, are less reliant on media messages about beauty ideals and place less importance on appearance than...
Read more on Celebrity Balla
 
Console games new threat to global climate: Study
New York, Sep 3 (IANS) Console games downloaded over broadband internet are causing more greenhouse gas emissions than Blu-ray discs delivered via retail stores, new research reveals. It is not always true that...
Read more on Celebrity Balla
 
Human greed driving species towards extinction: Study
Washington, Sep 3 (IANS) In a disturbing trend, scientists have reported that species are becoming extinct as much as 1,000 times more frequently - 10 times worse than the previous estimates - owing to human population...
Read more on Politics Balla
 
Kelly Brook's traumatic childhood
Kelly Brook has opened up about ''violent and horrific'' memories from her childhood. The 35-year-old actress has revealed that although she enjoyed some aspects of growing up on a council estate in Kent, South East...
Read more on Celebrity Balla
 
Emmy Rossum not 'easy'
Emmy Rossum insists she's not ''easy'' like her 'Shameless' character. The 27-year-old actress stars as Fiona Gallagher in the US remake of the hit series and she's revealed that although she's had sex on a first date,...
Read more on Celebrity Balla
 
2016 NASA asteroid mission awaits your messages
Washington, Sep 3 (IANS) NASA has invited the public to submit short messages and images on social media that could be placed in a time capsule aboard a spacecraft to be launched in 2016 for an asteroid study. Called...
Read more on Apple Balla