Comcast Pays Overdue Fees, Offers Freebies For TWC Merger Approval

WheezyJoe writes: In seeking more support for its mega-merger with Time-Warner Cable, Comcast has been going across the country giving local governments a chance to ask for favors in exchange for approving a franchise transfer. In Minneapolis, this turned up an unpaid bill of $40,000 in overdue franchise fees, so Comcast will have to pay the city money it already owed in order to get the franchise transfer. Comcast will also throw in $50,000 worth of free service and equipment.

"Thirty Minneapolis city buildings will get free basic cable for the next seven years as part of a package of concessions (PDF) the city wrung out of Comcast in exchange for blessing its proposed merger with fellow cable giant Time Warner," Minnesota Public Radio reported. The article notes that getting any kind of refund out of a cable company is not easy.

Part of the deal with Minneapolis involves the spinoff of a new cable company called GreatLand Connections that will serve 2.5 million customers in the Midwest and Southeast, including Minnesota. After the deal, Comcast's franchises in those areas would be transferred to GreatLand. Such goodwill concessions may seem impressive as Comcast seeks to foster goodwill, but one wonders how Comcast/Time Warner will behave after the merger.

Comments

feeling swindled

[dingleberrie]

I know, as a cartel-based geographically-monopolistic corporation it may look like I think I can do what I want and ignore these fees. But here I am trying to be a good upstanding corporation. I'll even give you a cut. Make me bigger and I'll promise... It'll all work out.

Re:Corrupt.

[kelarius]

Except you're missing the fact that Comcast already controls vast swathes of the content creation industry, if they control the markets AND the creators then they don't need to deal with the other creators because fuck them, we'll make our own shit. Of course they will still deal with the other CCs as it's a prestige thing but it gives them far too much power in bargaining with them.

Add that to being able to bully the MSOs since they're the only game in town other than broadcast (which most customers don't bother with as it's extra work they need to do) and all the merger does is strengthen the behemoth that Comcast is becoming.