Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: New York Mayor urges commitment to universal, affordable broadband access in Comcast-Time Warner merger, (Aug 27, 2014)

By Linda O’Brien, J.D., LL.M.

New York City Mayor Bill de Blasio has reiterated the need for universal, affordable broadband access for every New Yorker, in comments to the Federal Communications Commission (FCC) regarding the contemplated merger between Comcast and Time Warner Cable (TWC). His comments set forth commitments the FCC should require Comcast to make before approving the companies’ joint application to transfer licenses and authorizations.

In a letter to the FCC on August 25, Mayor de Blasio stated the city has engaged in a constructive dialogue with Comcast about the implications of the contemplated merger with TWC, but remains concerned about the merger’s impact on New Yorkers, especially those without affordable, high-speed broadband access. “Reliable high-speed Internet access is no longer a luxury, but a necessity for connecting people to job opportunities and critical services, helping to support economic and business development in our cities,” said Mayor de Blasio.

The letter stated that a series of similar mergers has already reduced competition in the cable and broad band sectors, leaving Americans vulnerable to increasing rates and declining customer service. The transfers requested by Comcast and TWC threaten to further alter the shape of cable and broadband markets, both in New York and nationally. The letter sets forth criteria by which the FCC should evaluate the implications of the contemplated transfers and recommends that the Commission condition approval of the transfers on Comcast’s agreement to substantive, transparent, and enforceable commitments.

The commitments recommended by the letter include: (1) affordable access for low-income and other underserved residents, including the elderly and persons with disabilities; (2) transparent accounting of rate changes; Improved customer service and notification; (3) timely upgrading of infrastructure to fiber optic cable; (4) expansion of affordable broadband infrastructure and services to geographic locations where they are lacking; (5) support for municipal access and resiliency initiatives; (6) meaningful and stable support for public, educational and government channels; and (7) protection and promotion of an open Internet, through Net Neutrality commitments.

“The contemplated merger between Comcast and Time Warner Cable has particularly serious implications for those who are least likely to have access to high-speed Internet—among them the low-income, elderly and disabled residents and people of color,” said de Blasio. “Comcast needs to make demonstrable commitments to expand accessibility to underserved residents, upgrade infrastructure, improve customer service, and protect and promote an open Internet before merging with Time Warner.”

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