Comcast files defence of TWC acquisition with the FCC

09 April 2014 | Sophie Donoghue


US conglomerate Comcast has laid out a defence of its plans to acquire Time Warner Cable (TWC) to telecoms regulator the Federal Communications Commission (FCC).

The $45 billion deal, which was announced on February 12, is expected to be heavily scrutinised by the FCC, as a merger between the two companies would see the combined operation take control of a third of the US video market and over a third of the country’s broadband market by subscribers.

The FCC has formally launched a regulatory review of the merger, which will see Comcast's public policy officer, David Cohen, testify before the US senate judiciary committee on April 9.

Comcast argues that the merger will enable the investment of enhanced broadband services, arguing that "the post-transaction company will improve the experience for customers today and forge ahead to meet future challenges and needs".

According to Comcast, the merger would not diminish competition, as the two companies' service areas do not overlap and the merger would not remove a provider in local markets.

There is great concern among consumer advocates and industry experts that the merged company would have a lot of control over what was shown on US TV.

The FCC and the US justice department are expected to issue a ruling by the end of the year.