Executives from US cable giants Comcast and Time Warner Cable (TWC) testified before the US Senate Judiciary Committee yesterday, as the government’s exhaustive analysis of the USD45 billion merger between the pair got underway. Since announcing its projected takeover, Comcast has reiterated that the merger combines two companies that do not directly compete in any markets, meaning no consumer would lose a choice of an internet or cable provider. Further, it has argued that TWC’s customers would see a boost in quality of their services and the speed of their broadband connection.
In a Public Policy blog posting, David L Cohen, executive vice president at Comcast, noted: ‘Comcast and TWC do not compete against each other in any area, so there is no reduction in consumer choice in any market. Customers will still have the same number of video, broadband, or phone options before the deal as after it … The traditional boundaries between media, communications, and technology are obsolete. The competitive ecosystem in which we operate includes companies with national and even global scale, like AT&T, Verizon, DirecTV, DISH, Netflix, Amazon, Apple, Yahoo, Google, and Facebook – who are competing with each other and us in unprecedented ways’.
Earlier this week the two parties filed their joint Applications and Public Interest Statement with the Federal Communications Commission (FCC), and last week Comcast filed its Hart-Scott-Rodino notification with the Department of Justice (DoJ).