Charter-Time Warner merger alarms Democratic senators

Five senators from the Democrat Party, including presidential hopeful Bernie Sanders and Al Franken have expressed serious concerns about the proposed merger between media giants, Charter Communications Inc. and Time Warner Cable Inc.. A third and smaller media group, the Bright House Networks, would also fall under their umbrella if the merger succeeds. The Senators' objection lies mainly with the formation of a media duopoly which would stifle competition and trigger the increase of cable costs for the American consumer.

Reuters give more details on the story. Charter Communications had offered Time Warner a $56 billion "cash-and-stock deal" in May 2015, a move which would make it the number two cable company in the U.S. Shareholders in both companies eventually supported the agreement, which is now being reviewed by the Federal Cable Communications. Aside from Sanders and Franken, Democratic Senators Elizabeth Warren, Ed Markey, and Ron Wyden had expressed "serious concerns," pointing out that a Charter-Time-Warner union would effectively have a hold on two thirds of the American viewing public.

All the Senators said that they are watching out for the American consumer. Cable prices can rise if the merger places heavier debts on Charter which needs funds to build its network in the rural areas. The "nationwide broadband duopoly" that the new company would establish would also discourage innovation and with it, lower cable costs.

The Hill adds that, a letter written by the Senators to the FCC and the Department of Justice urged them to study "any possible harm" that the deal might bring to the "telecommunications marketplace and its consumers." 

Meanwhile, according to Variety, Charter has positioned the merger as advantageous to the American viewing public. It cites the support of other groups that promote video-friendly environments and diverse programming, such as the leading video-streaming provider Netflix, multi-cultural organizations, and independent programmers.

Tags

Charter Communications, Time Warner, Democrats, Merger, broadband duopoly, Bernie Sanders, Al Franken

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