News

Comcast defends Time Warner merger as review kicks off

Comcast defends Time Warner merger as review kicks off

TOO BIG?:Comcast's 175-page filing with the Federal Communications Commission formally launches the regulatory review of the proposed $45.2 billion merger between the No. 1 and No. 2 cable operators. Photo: Reuters

By Alina Selyukh and Liana B. Baker

WASHINGTON/NEW YORK (Reuters) – Comcast Corp’s merger with Time Warner Cable Inc would not deprive consumers of TV or broadband choices and would help the two companies compete against newcomers including Google Inc and Apple Inc in the video market, Comcast told U.S. regulators on Tuesday.

Comcast’s 175-page filing with the Federal Communications Commission formally launches the regulatory review of the proposed $45.2 billion merger between the No. 1 and No. 2 cable operators. The U.S. Department of Justice will conduct the antitrust review and the FCC will examine whether the deal is in the public interest.

In the filing, Comcast reiterated that Comcast and Time Warner Cable do not directly compete in any markets, meaning no consumer would lose a choice of an Internet or cable provider, as Comcast instead would boost the quality of Time Warner Cable’s services and bring faster Internet speeds.

Comcast has pledged to divest some cable subscribers so the combined company would serve just under 30 percent of the U.S. pay television video market. The company said it would serve between 20 and 40 percent of the U.S. broadband subscribers.

Opponents have raised concerns that the combined company will have too much power over what Americans can watch on television and do online.

In Tuesday’s filing, Comcast argues that such concerns are unwarranted, especially given the growing competitiveness of both the video and the Internet markets.

All of Comcast’s and Time Warner Cable’s businesses compete with “array of sophisticated companies with national or even global footprints,” including satellite and telecom companies, the companies said in the filing.

Comcast’s filing comes a day before the company’s executive vice president, David Cohen, and Time Warner Cable’s finance chief, Arthur Minson, are scheduled to testify in Congress. They are expected to face questions about the combined company’s reach into broadband markets.

(Editing by Matthew Lewis)

Recent Headlines

14 hours ago in Sports

Congressman charges NFL with wrongdoing

pallone1614461738670

A senior House Democrat has found that National Football League officials improperly sought to influence a government study on the link between football and brain disease.

14 hours ago in National

Democrats, seeking unity, give Sanders say in party platform

14-overlay-8

The Democratic Party said on Monday it would give U.S. presidential contender Bernie Sanders a prominent say in writing its platform this year, a gesture that could ease tensions between Sanders' camp and party leaders, whom Sanders has accused of favoring rival Hillary Clinton.

14 hours ago in Sports

Tom Brady continues his fight with NFL

25-overlay-6

New England Patriots quarterback Tom Brady on Monday asked a U.S. appeals court to reconsider its ruling reinstating his "Deflategate" four-game suspension, saying the decision runs contrary to federal labor law.

14 hours ago in National

Hawaii could be first to put gun owners in federal database

hawaiigunrestrictions16134856688305

Hawaii could become the first state in the nation to enter gun owners into an FBI database that will automatically notify police if an island resident is arrested anywhere else in the country.

14 hours ago in Lifestyle, National

Kicking the habit: Adult smoking rate in U.S. is falling fast

cigarettes16137527645580

The smoking rate among U.S. adults has been falling steadily for decades but the latest survey from the Centers for Disease Control and Prevention finds the 2015 decline is the biggest in more than 20 years.