dslreports logo
site
spacer

spacer
 
   
spc
story category
Comcast: Our Merger is Already Causing Oodles of Competition!
by Karl Bode 02:22PM Wednesday Jul 16 2014
To get their acquisition of Time Warner Cable approved, Comcast has been telling anybody who'll listen that the deal will somehow create more competition. They're making this claim at a time when AT&T and Verizon are looking to exit unwanted DSL markets, literally shoveling customers in Comcast's direction, resulting in less competition than ever before across huge swaths of the country.

Comcast has also tried to proclaim that there's just so much gosh darn competition out there right now that there's simply no way a larger Comcast could possibly get away with anti-competitive behavior. Comcast's most often used examples of this robust competition usually include Google Fiber (whose relatively tiny footprint will never pose a serious threat to Comcast) and Hulu (which Comcast co-owns).

Comcast's top lobbyist and policy guru David Cohen is trotting that argument out again today at a hearing in the Senate Commerce Committee. There, Cohen will inform lawmakers that competition is "tipping in favor of consumers." To make that point extra clear, Comcast PR rep Sena Fitzmaurice took to Twitter to post a handy infographic suggesting competition has gone wild just since Comcast announced the deal.



The infographic, which effectively lists dozens of unrelated events in tech announced since Comcast's announcement of the deal, is supposed to convey a sense that everything is just so damn competitive, you really shouldn't worry about Comcast getting larger. Decades of media consolidation history tells a different story, though it's hard to beat a pretty infographic.

view:
topics flat nest 

tshirt
Premium
join:2004-07-11
Snohomish, WA
kudos:5
Reviews:
·Comcast

Karl, Why do you keep blaming ComCast....

"(at a time when AT&T and Verizon's exit from many unwanted DSL markets )
....for others being unwilling or unable to compete?

If you set aside your anti-comcast bent, and consider that cable et al is the baseline widespread HSI provider that WANTS to keep expand and improving their plant footprint (yes they are doing it for profit) but are NOT responsible or V or T's reluctance to invest in further wired solutions.
asdfdfdfdfdf
Premium
join:2012-05-09
kudos:3
Reviews:
·Verizon Wireless..

1 recommendation

Re: Karl, Why do you keep blaming ComCast....

He's not blaming comcast for verizon and ATT. The point is that most of the wireline market in the US is a duopoly with ATT/Verizon being one half (the telco half) of it. So the behavior of att and verizon, in showing every interest in abandoning wireline, must surely play a significant part in assessing the state of competition in this market.

Karl Bode
News Guy
join:2000-03-02
kudos:42

4 recommendations

You miss the point entirely.

I'm not blaming Comcast for this (you're right, this happens whether or not Comcast merges with Time Warner Cable).

I am however calling out Comcast for pretending that an explosion in competition will keep your freshly-merged, larger company honest when we're actually just about to see an unprecedented reduction in competition.

tshirt
Premium
join:2004-07-11
Snohomish, WA
kudos:5
Reviews:
·Comcast

1 recommendation

Re: Karl, Why do you keep blaming ComCast....

Ok cohen is a spin doctor asshole, I agree on that, at least he's well suited to the job, even if overly transparent.

It's normal in this part of the economic cycle to see merger mania, money is still cheap enough to borrow that it covers the overpricing of the assets IF the marriage is successful. If not it's yet another investor lesson.
elefante72

join:2010-12-03
East Amherst, NY
Reviews:
·Verizon FiOS
In all that "innovation" timeline, the only innovation I see for TWC or Comcast is that they are merging. It seems like if you "command" the market, innovation is not necessary, except for creating my byzantine methods to enhance margins to ungodly levels.
dfxmatt

join:2007-08-21
Evanston, IL
They expand at the speed of the slowskys. So yes, they expand, but it doesn't mean competitively or even close to.

Mike
Premium,Mod
join:2000-09-17
Pittsburgh, PA
kudos:1
Reviews:
·Verizon FiOS

2 recommendations

Hey they're technically right

»corporate.comcast.com/images/inn···-twc.pdf

Look at these different packages from our single market competitor!!!!!!! Plus some we just simply added on for the hell of it at the bottom to make it look complex!!!!

SO MANY CHOICES

-

Do you want real free market? Bring back uncompressed over the air digital transmissions. This is how you kill the beast.

--
"If something about the human body disgusts you, complain to the manufacturer" - Lenny Bruce
What this country needs is a good five dollar plasma weapon.

tshirt
Premium
join:2004-07-11
Snohomish, WA
kudos:5
Reviews:
·Comcast

Re: Hey they're technically right

And what do you believe would draw others in to those markets to cause direct head to head competive offerings?

The only think I can think of is MONEY, in the form of higher prices, leading to more investment by more players willing to share the market.
ComCast/TWC isn't the root of the problem, it is the result.

why60loss

join:2012-09-20
Reviews:
·Comcast
·Time Warner Cable
said by Mike:

»corporate.comcast.com/images/inn···-twc.pdf

Look at these different packages from our single market competitor!!!!!!! Plus some we just simply added on for the hell of it at the bottom to make it look complex!!!!

SO MANY CHOICES

-

Do you want real free market? Bring back uncompressed over the air digital transmissions. This is how you kill the beast.

Well that was funny if only they weren't really trying to sell that all that happened because of a TWC-Comcast deal.

I think AT&T and the 100 citys thing could be due in part be doing this because of Comcast taking over TWC. But really google fiber is what kick started a lot of this stuff.

There were things in that time line that just really had nothing to do with this. Like how does bell labs doing 10gbs have anything do with well anything really.

tshirt
Premium
join:2004-07-11
Snohomish, WA
kudos:5
Reviews:
·Comcast

Re: Hey they're technically right

said by why60loss:

...But really google fiber is what kick started a lot of this stuff....

If that's true, then we should be blaming Google for the lack of competition, right?
Google gets no more credit/blame than ComCast for the series of unrelated moves other then pointing out a new investment cycle has begun, and everyone starts grabbing for the candy that came out of the piñata (get all you can, see if it's worth eating later)

buzz_4_20

join:2003-09-20
Limestone, ME
Reviews:
·Vestalink
·Pioneer Wireless

1 recommendation

Oodles?

That's funny... I'm in a TW service area and my options are:
Time Warner
$500 for 10/10 fiber
Dial-up

Where are these oodles they speak of?

No LTE isn't an option: I'm roaming to Canada from the US due to my home.
Not to mention that LTE is not a viable option for broadband anyway.
xthepeoplesx

join:2013-10-21

1 recommendation

Re: Oodles?

I have 8mbps from centurylink... thats it. Im in a TWC area and they refuse to provide us internet and yet no one else can come in. Hows that competition?

tshirt
Premium
join:2004-07-11
Snohomish, WA
kudos:5
So if you had an account with a Canadian carrier, would the cross border use be cheaper? would being across that border/imaginary/regulatory line be a better choice?

buzz_4_20

join:2003-09-20
Limestone, ME

1 recommendation

Re: Oodles?

$85 before taxes and fees for 10gb of data. That isn't even close to realistic. ESP as a Netflix subscriber.
thedragonmas

join:2007-12-28
Albany, GA
kudos:1

Re: Oodles?

said by buzz_4_20:

$85 before taxes and fees for 10gb of data. That isn't even close to realistic. ESP as a Netflix subscriber.

not even netflix, i just got a waranty replacement pc, used 30GB's JUST doing updates for o/s, drivers, and reinstalling a handfull of apps.

davidc502

join:2002-03-06
Mount Juliet, TN
kudos:1
Reviews:
·TDS

Comcast claims the following?

Is comcast claiming all of the following innovation (below) has happened because of the TW merger? That has to be the most ridiculous thing I've ever heard.

»corporate.comcast.com/images/inn···-twc.pdf
--
Cord Cutter Hauppauge DTV Tuner Card PlayOn.tv Hulu.com Netflix.com Windows Media Center Guide.
Here's how »homes.yahoo.com/news/how-to-pay-···275.html

Anon4fite

@150.216.118.x

Carlos "Como Estas" Slim

I don't know why no one has put these two together. Carlos "Como Estas" Slim, the Mexican billionaire in charge of running the telecom monopoly there is a perfect example of what's about to happen here in the U.S. We only need to look south to get a glimpse of what happens when Internet connectivity is monopolized to the point of extortion.

Como Estas... Comoestas... Comcast.
elefante72

join:2010-12-03
East Amherst, NY

Re: Carlos "Como Estas" Slim

Not only billionaire, richest man in the world (at least publicly).
All that $$ created in 3rd world latin america.

He also owns lots of MVNOs in the US too (tracfone, net10, Straighttalk, Page Plus, etc)...
etaadmin

join:2002-01-17
Dallas, TX
kudos:1
The Mexican congress just passed new laws two or three days ago that will open and break the monopolies in the telecommunications industry.

So Carlos Slim is going to be a looser in this debacle and he is already looking for new investments outside Mexico.

»www.americasquarterly.org/conten···w-reform

So the US is worse than Mexico and it is not going to change.

Flyonthewall

@206.248.154.x

Anyone have an idea?

To add that link to the Comcast cancellation call to their tweeting. That's something that also needs to become very public too. It's a nice balance to all the warmth and love they shovel.