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Charter Defends Merger with Time Warner Cable

Charter Defends Merger with Time Warner CableCharter Communications has come out to clear the air over their proposed merger with Time Warner Cable (TWGood Luck…

C) and Bright House Networks (BHN).

Their expected defense comes just a few days after Dish Network through CEO Charlie Ergen appealed to the Federal Communications Commission (FCC) not to approve the merger. When Ergen met representatives from FCC, he told them that approving the merger will be “unhealthy for the broadband and online video marketplaces”.

He further urged that the combined force of the three companies will work against their rivals and undermine the spirit of healthy competition in the market. Their main fear was that the move would lead to monopoly of Charter in the liberalized market. But Charter has responded to that laughing off the fears expressed by Dish Network.

The statement said that New Charter will bring pro-consumer and OVD practices to more homes without being too big. “New Charter would serve only 23% of subscribers receiving 25 Mbps and above and significantly less than the roughly 60% Comcast-TWC would have served.” The company also said the deal would be smaller than the percentage Comcast serves today thus allayed any fears of enjoying market monopoly as it had been alleged.

“New Charter will serve 21% of all wire line broadband customers, which is less than Comcast and only slightly more than AT&T.” Charter said it is not alone in the deal as many other operators are sounding positive on its prospects. “Netflix supports this merger and called for its swift approval. Broadband subscribership is Charter’s leading driver of growth; consumers appreciate our superior broadband when multiple family members are using data intensive applications like online video.”

If the merger sails through, New Charter will offer fast minimum broadband of 60 Mbps, streamlined billing, no data caps, no usage-based billing, no modem fees and a generous interconnection policy.


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