Comcast, Time Warner Cable Merger Hits More Roadblocks
David Curry | | Apr 18, 2015 07:12 PM EDT |
The Comcast, Time Warner Cable merger review is starting to find even more issues.
The Comcast, Time Warner Cable merger review has been ongoing for one year now, but there seems to be no end in sight as the Department of Justice and Federal Communications Commission both continue to review all of the anti-consumer and anti-competition factors the merger may bring.
Announced on February 13, 2014, the merger would bring the two largest cable and broadband providers together, with $45 million spent by Comcast to make this happen.
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Several advocates claim the merger will give Comcast greater control over the U.S. broadband and cable industry, forcing consumers into low speed, high price contracts. Having Time Warner Cable on its side will make it almost impossible for other companies to compete, or regulators to attack the company.
In a new report from The New York Times, it looks like staff lawyers at the DOJ are looking at getting the merger blocked, following various complaints from companies and U.S. citizens alongside the poor service both Comcast and TWC provide -- shown through the low customer satisfaction.
Even though Comcast claims once it acquires TWC it will be able to add faster broadband, offer better customer service and save money lowering bills, the staff lawyers are not convinced Comcast's intentions are true and believe for most customers, the price will remain the same, the speeds will remain low and customer service will remain an issue.
The FCC also appears to be siding with the decision to block the merger, with Tom Wheeler showing he is not afraid of the two large broadband companies and is willing to fight for consumers, as demonstrated by the instatement of Title II 'common carrier' on internet service and wireless providers.
Comcast has been hurt already by the growing competition from Google Fiber, Verizon and Cox Communications, losing this acquisition with Time Warner Cable might force them into full overdrive to try and fight for its number one position.
Add the fact more customers are cutting the cord and going internet-only, Comcast's business may fall on its head if it fails to compete, even if it acquires TWC.
TagsComcast, Time Warner Cable, cable, FCC, DOJ
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