Charter tries to sway regulators
Charter Communications Inc. is trying to convince the government that consumers will benefit if it is allowed to create a cable giant through its proposed $ 67.1- billion acquisition of Time Warner Cable and Bright House Networks.
The company says it will roll out faster Internet with no data caps for Time Warner Cable and Bright House customers for less money than a comparable service could. It is also pledging to continue its policy of not blocking or slowing traffic, or establishing paid fast lanes for some content.
The government’s new “net neutrality” rules prohibit those practices, though Internet providers have sued to throw out the rules.
Federal Communications Commission Chairman Tom Wheeler has said that the Stamford, Conn., company needs to show how a more powerful Charter would benefit consumers.
Comcast Corp. scrapped its bid for Time Warner Cable this spring after pushback from regulators who were concerned that the combined company would serve more than half of the country’s high- speed Internet customers, giving it the power to undermine online video rivals.
Charter has pointed out that its share of that market is smaller than that, at 30%. It would have 19.4 million Internet customers, fewer than Comcast has now, and 17.3 million cable customers, less than both Comcast and the proposed combination of AT& T and DirecTV, if regulators approve that pending deal.
In another bid to assuage the FCC, Charter also says it will submit disputes over commercial Internet traffic deals, called “interconnection,” to the agency.