Charter/TWC/BHN Could Lead to Less Broadband Competition, Incompas Says
Unless the inevitable widening schism in programming costs that would follow Charter Communications' purchases of Bright House Networks and Time Warner Cable can somehow be addressed, the FCC should reject the deals, Incompas said in an ex parte filing posted…
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Tuesday in docket 15-149 on a meeting Tuesday at the group's conference in San Francisco between Gigi Sohn, counselor to Chairman Tom Wheeler, and Angie Kronenberg, Incompas general counsel. Incompas said it raised red flags about how the deals might affect the broadband market's competitive landscape. Charter's application lacks any kind of analysis of what the transactions would do to broadband competition and to the "intertwined markets" for linear video and broadband, Incompas said. Consumers prefer ISPs that also offer multichannel video services, but rising video costs are a big hurdle for small- and mid-sized ISPs interested in building out their broadband networks, Incompas said. Charter's and TWC's larger scales post-deals would mean lower programming costs for New Charter relative to potential broadband competition, resulting in "a substantial barrier to future broadband investment and competition in (New Charter's) footprint," the group, formerly known as Comptel, said.