Charter Communications, Inc., Time Warner Cable Inc. and Advance/Newhouse Partnership recently filed a public interest statement with the FCC seeking approval of the proposed merger of the companies. The FCC must determine whether the merger serves the public interest, convenience and necessity by weighing the potential public interest harms and benefits and whether the merger violates or interferes with the Communication Act’s objectives. According to the public interest statement, the merger will create no risk of public interest harms, and will instead result in a range of public interest benefits, such as faster Internet at a better value, continued commitment to an open Internet and a faster rollout of advanced video technology.
To ensure these benefits are realized, New Charter says it will, among other things:
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Increase competition, within four years of closing, by investing at least $2.5 billion to build-out networks in commercial areas within its footprint beyond where it currently operates, building out a million line extensions of its networks to homes in its franchise areas, and deploying more than 300,000 out-of-home Wi-Fi access points;
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Not block or throttle Internet traffic or engage in paid prioritization for three years;
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Not impose data caps, engage in zero-rating or charge additional fees for use-specific third-party Internet applications for three years;
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Engage in reasonable and non-discriminatory interconnection and submit any interconnection disputes to the FCC for resolution on a case-by-case basis for three years;
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Transition all TWC and BHN cable systems to all-digital networks within 30 months of closing, allowing substantially all customers to take advantage of at least 60 Mbps download speeds;
Charter, TWC and Advance/Newhouse Partnership also made similar commitments in the applications they recently filed with the New York Public Service Commission and California Public Utilities Commission for approval of the transfer of control of subsidiaries and franchises located in the respective states, and presumably has done so wherever state approval is required. As explained in a previous post, the FCC and state agency reviews of the merger provide an opportunity for local governments to voice their concerns about the merger’s effects on localities and seek conditions that could protect local communities should the FCC and state agencies decide to approve the merger and transfer of control.
