The Dangers of the Comcast Time Warner Merger

[Commentary] The proposed Comcast-Time Warner Cable merger has the potential of carrying considerable implications for New York City consumers.

Prior to rendering a decision, the Public Service Commission must thoughtfully deliberate the effects that the proposed merger would have on our community to ensure that the needs of our people are best served by any changes that would -- or could -- result. This deal would merge Comcast Corporation, which is not only the biggest cable company in the US; it is also the largest media provider in the world, with Time Warner Cable, the second largest cable company in the country.

This merger is extremely concerning to any reasonable person with respect to the effects of non-competition on Internet and cable customers, as it will likely diminish what is already minimal competition for high-speed Internet.

In addition, apart from cable and Internet customers, Time Warner Cable and Comcast already have the vast majority of power to set prices on transit and content providers -- some of whom are direct competitors of content providers owned by Comcast, which certainly sounds ripe for an abuse power by Comcast towards non-Comcast owned content providers.

Furthermore, if the merger were to succeed, the interconnection market -- where Comcast already has tremendous control -- would be undoubtedly altered, possibly facilitating Comcast to gain additional leverage in demanding higher payments from transit companies.

[James is New York City's elected Public Advocate and Chair of the Commission on Public Information and Communication (COPIC)]