Comcast-TWC $45 billion deal faces new hurdle

The Federal Communications Commission has thrown a new roadblock in the path of Comcast’s $45 billion takeover of Time Warner Cable, rewriting their definition of broadband to paint the largest US cable company as a more dominant force in high-speed internet access.

The FCC’s decision has big implications for Comcast’s bid for TWC because it dramatically changes the competitive landscape for broadband -- a central consideration for regulators deciding whether to approve the deal. The change means the number of American families reliant on a single provider for true broadband services will climb from 19 percent to more than half. In most cases, that provider will be one of the big cable companies, which have fiercely resisted the change. “This redefinition shines a bright light on the reality for most Americans, which is that the only choice of broadband provider is the cable monopoly,” said Susan Crawford, a co-director of the Berkman Internet centre at Harvard University “Comcast might claim it is in fierce competition with other providers, but that is a bit like saying the New York Yankees compete with high school baseball teams. Both roughly do the same thing, but the speed and capacity is completely different,” added Crawford, a persistent critic of the Comcast deal. TechFreedom, a pro-cable lobby group, accused FCC Chairman Tom Wheeler of pushing through “a reckless, ideologically driven regulatory agenda that would, in fact, slow the investment needed to drive speed upgrades.”