Comcast – Time Warner Merger Fizzles

This Friday, the same day the Apple Watch started retail distribution, Comcast announced they were walking away from the deal they proposed 14 months earlier to acquire Time Warner Cable. In my opinion, this is great news for Indiana since part of the deal was that we were going to be shuffled off to a new company called Great Land Connections which would be a spin-off entity from Comcast and partially owned by Charter Communications. Like all cable companies, Charter has a less than stellar record amongst its existing customers. Even though Comcast has the worst reputation for customer satisfaction among American companies, I can’t help but think we’re better off with them rather than being slung around like a pawn in the trade-off Comcast was proposing to satisfy the Federal Trade Commission that the merger would not reduce competition. Great Land would likely not have the negotiating muscle to get as good a rates for media as Comcast, and it would also likely get Internet connections either through Charter or Comcast and be relegated to second tier performance and support. It’s the latter which worried me since neither AT&T through their U-verse service nor Charter provide anything close to the speed and bandwidth that Comcast provides. I currently get a minimum of 105 Mbps (usually around 120 Mbps) download speed and 20-25 Mbps upload speed. This is much greater than when I was with AT&T where I got <20 Mbps download and <1 Mbps upload speed for essentially the same price. According to their website, Charter offers only one Internet service tier at 60Mbps download and 4Mbps upload. While these speed differences have little impact when you’re just surfing the Net with a web browser, they significantly impact performance when you’re watching streaming video or using Facetime or Skype.

So while I have no love lost for Comcast as a company to do business with, I think we in Marion County are better off with them than being traded around as part of their proposed merger with Time Warner. Whether the deal for Charter to buy Bright House Networks which services 120,000 customers in Central Indiana in Hendricks, Boone, Hamilton, and Grant counties is affected by this latest news remains uncertain, but I wouldn’t be surprised if that deal also falls apart as well.

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