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

Corrupt.

[Anonymous Coward]

They should be dissolved, not merged.

Re:Corrupt.

[ArmoredDragon]

My personal theory is that a merger would be the best way to dissolve them. Here's why:

The content industry has been pushing for higher and higher re-transmission rates across the board, and usually they've succeeded because individual MSOs typically don't have enough bargaining power to resist higher rates each time the contracts are up for renewal. At the same time, the content industry has been resistant to non MSO (over the top, internet based) content delivery because they know that they risk disrupting their already very profitable cable model.

If a massive provider such as Comcast is able to get enough leverage that they can resist or even lower the retransmission payments, then I think that would basically force their hand to look for alternative distribution methods, thus killing the cable model in the process.

Otherwise think about what happens if we leave things as is: TWC is already well known to be a douchebag cable company, about the same as Comcast is. I'm not sure how approving the merger would change that for the worse.

The only question is what happens to their internet service vis a vis companies like Netflix. I think a solution to that, which Comcast would buy, is to have them lobby hard for Title II as a condition of merger approval (they have to lobby first and it has to become law first before any merger is approved, and even if such a law is overturned later, they still have to agree to Title II conditions for themselves for the next 30 years.)

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.

In other words.

[msauve]

"Thirty Minneapolis city buildings will get free basic cable for the next seven years"

Which is to say Comcast is helping Minneapolis increase taxes. We all know there's no such thing as "free," so this is simply a hidden tax on cable subscribers, who will now be subsidizing municipal cable.

Re:In other words.

[Anonymous Coward]

And it looks like Comcast is writing checks they don't even have to cash. They'll provide the "free" cable until the merger goes through, then it becomes the burdon of GreatLand Connections.

And I'm sure GreatLand Communications will be spun off with a competent staff utilizing new and robust hardware, not the crappy group of staff that you've been waiting to cheaply divest along with crappy and aged equipment serving less desirable markets.

Re:In other words.

[cdrudge]

"Thirty Minneapolis city buildings will get free basic cable for the next seven years"

I wonder why thirty Minneapolis city buildings need basic cable to begin with, let alone for 7 years. Maybe the city employees could, you know, do their jobs instead of watching basic cable?

"Let me ask you....

[Rick Zeman]

....just how can you be bought? And how cheaply?"

Also, shouldn't Minneapolis' club being removing the franchise for the unpaid franchise fee? If I don't pay Comcast, they turn off my cable.

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.

When Lobying becomes bribery

[houghi]

This is so obviously bribery it isn't even funny anymore. Obviously nobody will do anything about that. There will be no investigation. There will be nobody actually trying to stop it.

The merger will go on and I would not be surprised if they did not even pay out their bribery.

I can imagine that some of the big shots will get a much larger bonus when the merger goes through.

Re:When Lobying becomes bribery

[fustakrakich]

There will be nobody actually trying to stop it.

Least of all the voters. Everybody's favorite pork bellied congressman will always win reelection.

Let's say what we really mean here

[NotDrWho]

Comcast has been going across the country giving local governments a chance to pay bribes in exchange for approving a franchise transfer.

FTFY

Looks like

[Ol Olsoc]

One Comcast to rule them all, One Comcast to buy them,

One Comcast to bring them all and in the baksheesh bind them

In the Land of 'murica where the infomercials lie."

No Wonder!

[rmdingler]

One wonders how Comcast/TimeWarner will behave after the merger.

After being held accountable for, what to them, is tens of dollars in past due franchise fees, and then bribing gov't officials fully & legally right under our noses,

I would say their incentive to improve is infinitesimal.

Re:translations

[ihtoit]

what, you expect me to RTFA?? This is Slashdot, not the BBC... :p

im sure the business strategy was solid.

[nimbius]

general public: you are by far the worst internet service provider on the planet. There are detainees being tortured in guantanamo right now with better internet access than us.
Comcast: It is comcastic. it bundles its service. it does this whenever its told.
FCC: seriously guys we have quantifiable data that shows people prefer packet radio and tin cans to you. Also its pretty obvious we're going to pass some common carrier regulation
Comcast: Is it because we aren't comcastic enough? Here, We'll merge with Time Warner and then you can experience the best service. also bundle it.
FTC: guise, this is the opposite of a solution. you would literally own half the US internet. No dice.
Comcast: How about we do you....a favour....Minnesota, just this once because we're buds like that
Minnesota: What? we--
Comcast: ssshhhhhhhhh its comcastic.....its comcastic.....
Minnesota:...right. uh, any chance you could pay the franchise fee you've been ignoring?
FTC Jesus Comcast....
Comcast: HE BUNDLES TOO WE ALL BUNDLE WHAT ARE YOU EVEN TALKING ABOUT

"Concessions"? more like "bribes"

[mr_mischief]

Giving away basic cable, which for buildings already wired has a marginal per-unit cost approximating zero, in exchange for a quid-pro-quo from a political entity sounds like public corruption to me.

Re:Franchise Fees are evil

[Lumpy]

Exactly. A franchise fee is simply a legal "doing business kickback"

How is this not bribery?

[nebular]

I was under the impression that offering money in exchange for political favours was illegal. I mean the usual end run around these issues is support for a re-election campaign; this seems a bit more obviously over the line.

*sigh* plus ça change, plus c'est la même chose.