Failure of Comcast-Time Warner deal may spark new wave of mergers

The demise of the Comcast-Time Warner Cable merger doesn’t mark an end to the consolidation of the cable and Internet-provider market -- analysts are saying it’s likely the beginning of what will be a new rush of mergers that will make an already consolidated market more so and likely cause prices to rise. While the mega-merger failed, cable companies have indicated a series of smaller mergers are likely shrinking what is already a consolidated industry.

Charter Communications, which was close to acquiring Time Warner Cable before Comcast stepped in with a better deal, has said it would go after Time Warner Cable again. Consumer groups say future mergers will give customers even fewer choices of Internet providers in a market that already offers scant options. Even with four large cable companies -- Comcast, Time Warner Cable, Charter and Cox -- and four large telecommunications providers -- AT&T, Verizon, CenturyLink and Frontier Communications -- Americans still have few choices because the providers avoid competing with each other.