It seems a lot of people are not thrilled about the prospect of Comcast buying Time Warner Cable. I’m one of them. A transaction like this one, where #1 and #2 are joining, should benefit the public in some way. I don’t think that would be the case here.
Comcast is absolutely right when it says not much will change. Comcast and Time Warner Cable both have monopolies in their respective regions. Joining the two won’t decrease competition today, as the two companies don’t really go toe to toe in many markets.
The thing is, if Comcast is allowed to buy TWC, that means TWC won’t ever have the chance to enter Comcast’s territory to compete. Time Warner Cable may be number two, but it has the best shot at expanding into the markets that Comcast currently serves. An acquisition would leave it up to Cox (a very-distant third) to apply pressure.
When you look at it that way, the purchase would remove any shot at meaningful competition in the future. That is bad for consumers.
Comcast has made it a point to keep us focused on the TV side of things (and the Chicago Tribune Editorial Board did a great job following the laser pointer) but broadband is what’s really at stake here. So while Comcast is pointing to services like Netflix and Hulu as reasons the deal should go through, look instead at the number of broadband options you have in your neighborhood, and then remember that Comcast wants to acquire the only cable broadband provider with a shot at catching up.
If government regulators do their jobs, this deal won’t go through.