FCC To Approve Charter Merger, Conditions Ban Caps For 7 Years This has become a bit of a broken record over the last six months, but the FCC appears very close to approving Charter Communications' $79 billion (debt included) acquisition of Time Warner Cable and Bright House Networks. Sources tell Bloomberg that FCC boss Tom Wheeler is circulating an order to approve the deal with conditions, with a vote scheduled within weeks.

Charter had previously promised to avoid usage caps and adhere to net neutrality rules (even if struck down by the courts) for a period of three years. Soon after the story broke, FCC Tom Wheeler issued a statement confirming the report, and that several conditions would in fact be extended to seven years. According to Wheeler's statement, the conditions being attached to the deal will be focused on "removing unfair barriers to video competition." Though Charter, Bright House and Time Warner Cable didn't directly compete, consumer advocates had worried that the merger would simply create another Comcast with a vested interest in inhibiting the natural evolution of Internet video services. "First, New Charter will not be permitted to charge usage-based prices or impose data caps," states Wheeler. It should be noted that while Charter has flirted with the idea of usage caps over the years, the ISP currently doesn't impose such restrictions. "Second, New Charter will be prohibited from charging interconnection fees, including to online video providers, which deliver large volumes of internet traffic to broadband customers," added the regulator. "Additionally, the Department of Justice’s settlement with Charter both outlaws video programming terms that could harm OVDs and protects OVDs from retaliation– an outcome fully supported by the order I have circulated today," Wheeler said. "The cumulative impact of these conditions will be to provide additional protection for new forms of video programming services offered over the Internet," the FCC boss said of the conditions. The FCC failed to give a specific timeline on merger approval, only stating it's continuing to finalize the deal review. Shortly after the FCC's announcement, the Department of Justice formally announced they would also be approving the deal. “This merger would have threatened competition by increasing the merged company’s leverage to demand that programmers limit their licensing to these online providers," the DOJ said in a statement of its own. "Together with our counterparts at the FCC, we have secured comprehensive relief and we will work together to closely monitor compliance to ensure that New Charter will not have the power to choke off this important source of disruptive competition and deny consumers the benefits of innovation and new services.” The problem of course is that the broadband market by and large remains uncompetitive, meaning that Charter will likely just find some other, more creative way to pass on the $27 billion in debt the deal creates -- to you, the consumer. The problem of course is that the broadband market by and large remains uncompetitive, meaning that Charter will likely just find some other, more creative way to pass on the $27 billion in debt the deal creates -- to you, the consumer.







News Jump California Defends Its Net Neutrality Law; AT&T's Traffic Up 20% Despite Data Traffic Actually Being Down; + more news Are The Comcast-Charter X1 Talks Dead In The Water?; AT&T May Offer Phone Plans With Ads For Discounts; + more news Europe's Top Court: Net Neutrality Rules Bar Zero Rating; ViacomCBS To Rebrand CBS All Access As Paramount+; + more news Verizon To Buy Reseller TracFone For $7B; 5G Not The Competitive Threat To Cable Many Thought It Would Be; + more news MS.Wants Records From AT&T On $300M Project; Google Fiber Outages In Austin, Houston, Other Texan Cities; + more news States With The Biggest Decreases In Speed; AT&T Hopes You'll Forget Its Fight Against Accurate Maps; + more news AT&T's CEO Has A Familiar $olution To US Broadband Woes; EarthLink Files Suit Against Charter; + more news 5G Doesn't Live Up To Hype, AT&T's 5G Slower Than Its 4G; Cord-Cutting Now In 37% of Broadband Households; + more news FCC Cited False Broadband Data Despite Warnings; ZTE, Huawei Replacement Cost Is $1.87B, But Only $1B Allocated; + more Cogeco Rejects Altice USA's Atlantic Broadband Bid; AT&T Is Astroturfing The FCC In Support Of Trump Attack; + more news ---------------------- this week last week most discussed

Most recommended from 95 comments



Inmis

@mchsi.com 20 recommendations Inmis Anon Caps are ok for all but Charter/TWC? So the FCC is blocking this ONE SPECIFIC COMPANY from imposing caps, but has no problem with Comcast, Mediacom, Att and numerous others with existing or in process of adding caps?



Amazing how two faced goverment entities and private companies can be on this issue. The providers lie to customers when adding caps and regulators have no problem with it. Here, the merger is GREAT because they are prohibited from enforcing caps for 7 years.



If caps are bad for Charter/TWC, why are they not bad for everyone else? Ostracus

join:2011-09-05

Henderson, KY 9 recommendations Ostracus Member A toothless FCC. I'd be more worried about all the movement by congress to make the FCC toothless. The ban may not last that long in that case. rradina

join:2000-08-08

Chesterfield, MO 920.3 39.3

·Charter

4 recommendations rradina Member Unfair Barriers to Video Competition Does this mean the FCC believes interconnect fees, metering/caps and opportunistic/retaliatory programming terms are harmful? If so, will they take action against other ISPs?



Regardless, Charter will have a mountain of debt and for 7 years they won't be able to tap these additional revenue streams.



Does this mean:



1) The merger is so lucrative they don't need the forbidden revenue sources

2) The forbidden revenue sources do not represent a significant source of revenue

3) Near-monopoly market positions allow them to price products to meet their debt obligations and please shareholders

4) Some and/or all of the above

5) None of the above

FureverFurry

RIP Daphne: 3/12/05 - 6/19/12

Premium Member

join:2012-02-20

49xxx 4 recommendations FureverFurry Premium Member No caps So "New Charter" is banned from imposing caps for seven (7) years as a condition. Anyone care to wager whether (a) Comcast will be inspired to follow suit; or (b) inspired to add more caps and fees ?



My plug nickel bet is on "A".

EGeezer

Premium Member

join:2002-08-04

Midwest ·Callcentric

3 recommendations EGeezer Premium Member Hoping for the future I'm hoping that by the time the seven year ban expires, we will have Google Fiber and common sense laws that allow local jurisdictions to build out their own systems at their own expense, just like they can build roads, bridges, water and sewer systems.