Charter Challenges Comcast/Time Warner Merger
An anonymous reader writes "Regional ISP Charter Communications is fighting back against the potential merger between Time Warner Cable and Comcast. Charter had been bidding for TWC before Comcast got involved, and now they're urging shareholders to reject the deal. 'From the regulatory perspective, it is difficult to imagine a transaction that could concentrate the industry more than the proposed Comcast merger,' they said in an SEC filing. James Stewart with the NY Times explains what Comcast would look like if the merger continues — when you add the TWC deal to the NBCUniversal pickup a few years ago, Comcast is starting to resemble a global tech company. He also explains why the deal isn't setting off antitrust alarm bells: 'Time Warner Cable operates in 29 states, but thanks to the old system of regional and municipal cable monopolies, Comcast and Time Warner Cable don't compete anywhere. Justice Department merger guidelines define geographical markets, which is why regulators weighing airline mergers examine competition on individual routes, not national market share. ... Under conventional antitrust standards, it's pretty much an open-and-shut case.'"
Not merged... and they need to compete with each other.
Currently they don't because the cities and counties don't let them. They set up absurd pole leasing rates and policies that effectively mean only one company can operate in the area. Its a violation of the spirit of the law if not the letter of the law. They need to be split and they need to compete.
I've decided to stop wasting my time responding to AC trolls/sockpuppets... so if you want a response from me... login.
And where do I sign?
If it is true that Time Warner and Comcast don't compete in common markets, this is just sour grapes.
Comcast cable tv is far behind other cable systems
so will they make it better or cut stuff from the time Warner systems to make them more in line with Comcast systems?
"Time Warner Cable operates in 29 states, but thanks to the old system of regional and municipal cable monopolies, Comcast and Time Warner Cable don't compete anywhere."
This is your state government(s) shafting you. The states created laws which allow cable monopolies. Local governments collect a franchise fee on the gross revenue of the cable companies operating within their boundaries. In the eyes of local government, less competition means higher prices which means more tax revenue (without voter feedback). Local government passively discourages competition through regulations, filings, public meetings, disclosures, insurance requirements, etc. Some local (and state) governments *actively* discourage competition.
227-3517
When are people and regulators going to wake up and realize that the "well, they don't compete against each other an any areas" is *not* a reason to say this merger is OK, but is a reason why it should be rejected!
The problem with broadband access in the US is that we don't have competition in most places. Some places have DSL (slow) or Fios/U-verse, but most don't. And no, satellite or 2 GB-capped cell service doesn't count as competition.
The very statement that they don't compete anywhere is the problem. Things need to be changed so that they compete against each other. That will not happen if they merge.
Sorry, it's evil all the way down.
What's this capitalism I hear so much about? It's meant to stop stuff like this, maybe the USA should give it a go
Somehow I've almost always managed to live in one of the small pockets of my state that Charter services, and they're always been awesome. Other than the occasional weeklong power outage or some such natural nonsense, they've been rock solid. I always see all the people constantly bitching about Comcast and thank the heavens that whatever little rural enclave I've ended up in hasn't had them as the cable provider.
One of the main reasons why programming is hard, is because computers are slow. This may sound very counter intuitive, but the fact that computers look like they are fast because they make use of many smart tricks, most of which we are no longer aware off. It is important to realize that computers all rely on the memory piramid, where in the top of the memory there is a little very fast memory and at the bottom there is a vast amouth of slow memory (often distributed in a system called The Internet). The range in speed and size is more than 9 powers of 10. A lot of effort is spend in copy data between the kinds of memory inside this memory piramid. And to be able to implement systems that appear fast, we have to deal with all the small tricks that are used in the system to make it look fast. Knuth has said that very often premature optimization is the root of all problems. The real fact is that almost every act of programming (in an imperative language) is an act of optimization, namely finding an implementation of a function with given constraints. Take for example the simple fact that whenever we deal with an integer in a program, it is an integer within a limited range. But an integer could be arbitrary large. So as soon as you declare an integer in your program, you are performing an act of optimization, because you decide that in your case the range of values within your function are limited to a certain power of 2. (Except if your language has an implementation for BigInt, but even these always have a limit.)
I'm totally okay with these guys all merging.
I'm totally okay with comcast charging excessively for connectivity between themselves and other ISPs. It's their wires, they can do what they want with them.
I'm not okay with the last-mile monopoly these companies have in the majority of the cities they operate in.
The solution to that is "local loop unbundling" -- which we already have for DSL and for local phone service. http://en.wikipedia.org/wiki/Local-loop_unbundling
If you don't like your DSL provider, you can switch, and it is mostly painless. You still pay rent to the last-mile provider but otherwise you don't have anything to do with them.
The same could be done with cable -- you get a wire from comcast / charter / warner / whatever, and if you don't like the performance you get a PPOE session to some other ISP and they peer with netflix or whoever better.
The last-mile providers get monopolies -- they should be given rents on their wires and otherwise be forced to provide access between any other ISP and the residents who have the wires terminated in their house.
I wasn't aware that the entities that sell programming to them were also divided into non-overlapping geographic areas.
If you really want to get an idea as to how this is all playing out, you should read Susan Crawford's book, "Captive Audience: The Telecom Industry and Monopoly Power in the New Gilded Age". It's not a happy story, and you'll probably be tempted to start throwing chairs at some point or another, but it is very important from an educational perspective. For the reasons given in the summary, I see no chance that the TWC acquisition will be blocked, and it's entirely possible that Comcast will control essentially all wired broadband access in the US within 15 years. What a utopian future that will be -- for Comcast.
This nation badly needs another Theodore Roosevelt, but the chances of a politician not entirely tainted by corporate influence being elected at the national level at this point is essentially zero.
Thanks to regulators in many areas preventing overbuilding, they can't compete. I've lived in towns that wouldn't even grant a permit to build a second cell tower, let alone grant someone permission to install additional cabling on poles or underground.
CableCos are already monopolies.Stand in line for a half hour at any service center, if you need to be convinced. Any company that has to compete actually has to take care of their customers in a timely manner.
It all depends on where you live and whats being offered. In some places DSL is as fast or faster than cable particularly for certain types of traffic because of the horrific tactics cable companies use to ensure everybody has a seemingly fast connection. I much prefer an uncensored connection that doesn't disconnect my torrents for instance than one that does. Not to mention during prime time my Internet connection shouldn't slow down. Cable companies frequently oversubscribe to insane degrees. Netflix is another great example on Comcast. For the most part when my DSL provider says I'm going to get 25mbps I'm going to get 25mbps (short of the line condition's preventing it). With cable I know at certain times of the day that “125mbps” connection will slow to a fraction of the speed or I may not be able to use it for my torrents, streaming video, etc. The largest cable company in the United States is particularly egregious. I would never voluntarily do business with them. I wouldn't subscribe to video services or internet services with them.
They have never competed. That's what the original legal monopolies did for the cable industry. They sold themselves to state and municipal governments using the argument that the level of investment required to bring us cable TV was too great and they needed monopoly status and protection. Then, with the camel's snout firmly lodged under the tent, they expanded into data, internet and telephony.
The eyesore component is a simple failure of government to create and manage an infrastructure that would co-locate all utilies cable, pipelines below grade and do it such a way that easements for access and maintenance are owned publicly and managed as if the public good was the highest consideration. Instead, streets are torn up at the whim of incredibly profitable and powerful business concerns and the cost of entry in order to compete in such a market remains higher than need be.
The capitalist model tends toward monopoly anyway. All these companies did, starting in the 70s, was accelerate their dominance over an unwitting public which was crippled by an unwilling and inept bunch of legislators. Which just goes to show that you get what you pay for. The general public doesn't pay to get officials elected, so they don't even get a kiss.
You are an idiot if you think there is any chance of them competing in the future if they are not merged.
No cable company wants to spend the amount of money it costs to build out an infrastructure in a city that already has an established company - the number of years it would take to get back the money invested is longer than the equipment would last - in other words there is no money to be made doing it.
There are two possible solutions:
1.) Price controls. $50 for 6Mbps is absurd when $70 gets you 50 Mbps. Mandate fractional pricing (6 Mbps would cost ~$7 a month). Or just say $100 for 1 Gbps (close to Google Fiber's price). Everything else will be fractionally calculated off that price.
2.) Vertical separation. One company provides the infrastructure. Others buy up bandwidth and data rate/speed from the network company and sell to the consumer. Many resellers could operate on one network selling different packages at different prices. This could also work with a municipal fiber network. The local government pays for and maintains the hardware, but private companies do the end-user selling (hopefully dodging the absurdity of the government selling me a TV package or spying on me). Already there are MVNOs that do the same thing with cell phone service.
One or the other should be done, but not both.
I think vertical separation might help. It helped break up studio-owned movie theaters in the '40s/'50s.
just about every big regulator goes to work for the industry when he's done. It's so common we have a name for it: Regulatory Capture.
:(.
Here in America we've been voting pro corporate right wingers into office since Reagan. They stacked the supreme court and have been chipping away at the gains made after WWII non-stop since those gains were made. It's not a battle I see us winning
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The problem here isn't a trust between Comcast and Time Warner. Rather, the problem is a trust between Comcast/Time Warner and the local government.
See you here http://tech.slashdot.org/comme... you bigmouthed little nobody...
APK
P.S.=> Have the balls to show up there in the link above to reply to it (& NOT days later like you did, LONG after I left that thread!)
NOW, in the link above, I simply tore you apart in it vs. your "so-called 'points'" that you "amended" bogusly, changing your parameters/constraints there!
(& I am going to rip you a new asshole there YET AGAIN, publicly, for your BIG mouth you little shit - prepare to be utterly humiliated, publicly...)
... apk