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Comcast Merger Means $2.4 Billion Consumer Toll
At least according to Comcast's smaller cable TV rivals...

The American Cable Association, which represents small and medium cable operators, this week released a new study by former FCC Chief Economist William Rogerson, claiming that a larger, more powerful Comcast means an increase in costs for consumers, as Comcast uses it's size to bully and bash its way around the cable market. Just how much will the merger cost consumers? The ACA pegs the total at $2.4 billion over nine years, with significant harm coming in two flavors:

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• "Vertical harm" arising from the combination of NBCU national cable programming networks and NBC owned-and-operated broadcast television stations with Comcast’s cable distribution assets, allowing Comcast to raise the fees it charges for NBCU to cable and satellite rivals (ACA members like WOW!, RCN, etc.).

•"Horizontal harm" or a larger Comcast using their increased market power to jack up prices by bundling NBC content with their local sports programming, access to which has already been a point of contention among Comcast competitors.

Comcast of course denies that a much larger Comcast means higher prices for consumers, arguing that the $30 billion deal will in fact be pro consumer if viewed "objectively."

The government has been reviewing the merger since December of 2009 and is likely to impose some conditions, though if recent history is any indication -- said conditions will likely be more theatrical than substantive in nature.

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camper
just visiting this planet
Premium Member
join:2010-03-21
Bethel, CT

2 recommendations

camper

Premium Member

The problem with Comcast...

The problem with Comcast arguing that the $30 billion deal will in fact be pro consumer if viewed "objectively." is twofold:

• Comcast has not a clue what is the meaning of the phrase "pro-consumer", and has demonstrated that fact over and over again during the past years.
• Comcast is not capable of viewing the deal "objectively" because Comcast sees the deal as overwhelmingly in its favor.


The latter, if nothing else, should send the chill of fear down your spine.