How a Comcast-Time Warner Cable Deal Would Affect Consumers

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What does Comcast/Time Warner mean for consumers?

In the immediate future, consumers won't see any changes because the deal will have to go through a lengthy regulatory review. And such a blessing is far from guaranteed. Comcast says getting approval will take as long as a full year.

Comcast has said it would divest about three million subscribers from the combined total of 33 million cable subscribers to ease competition concerns. The company hasn't yet said which customers they are, but they eventually will be turned over to a different cable company.

Time Warner Cable customers could see some technological upgrades. They are likely to get a new set-top box, because Comcast's equipment has been further ahead on the technology curve. Comcast has used its massive scale to invest in a next generation Internet-enabled cable box called X1, which it says offers a way better experience for watching video on demand and browsing channels. It isn't clear whether Comcast will be as interested as Time Warner Cable, however, in partnering with Apple to offer an updated version of the Apple TV set-top box. Comcast has been more focused on its X1 initiative. Time Warner Cable has been losing video customers. Some of its rivals have said the defections stem partly from the company's underinvestment in this kind of technology. Comcast, meanwhile, has been outperforming the wider industry in keeping its video subscribers, which it credits partially to the new X1 boxes. In terms of prices and service quality, things could go either way. In theory, a larger provider would have the purchasing power and efficiencies needed to keep prices down, and invest more in technology and service improvements. But for subscribers who have seen decades of consolidation alongside rising prices and poor service, it is easy to remain skeptical on these claims.


How a Comcast-Time Warner Cable Deal Would Affect Consumers