Comcast-Time Warner Cable merger may hinge on Internet service expansion

Comcast’s bid to win state approval to purchase Time Warner Cable could hinge on whether the company becomes a generous corporate citizen.

California officials -- who are considering whether to approve the merger of the nation's two largest cable companies -- have been prodding Comcast to use its vast resources to help expand Internet access and provide phone service for disabled residents. As conditions to move the deal forward, state officials have tentatively asked the Philadelphia company to roll out faster Internet speeds for its customers and provide phone service and affordable Internet plans for low-income families. The state also wants Comcast to upgrade Internet connections for schools and libraries. If the merger is approved, Comcast's broadband Internet service area would cover 84% of the state's population -- up from about 35%. Comcast currently serves San Francisco, Sacramento and other regions in Northern California. The California Public Utilities Commission is scheduled to vote on the merger in late May or June. The deal also needs approval from federal regulators, who have spent more than seven months probing potential antitrust concerns.