Digital divide is a key factor in the government's review of Charter's merger

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Bridging the so-called digital divide — the gulf between people who have ready access to the Internet, and those who do not — has long been a priority of President Barack Obama. And addressing the issue has become a key component in the government's review of a mammoth cable merger that could transform the local pay-TV landscape.

Charter Communications' proposed $67-billion plan to acquire two other cable companies — Time Warner Cable and Bright House Networks — would make it the dominant pay-TV and Internet service provider in Southern California, with more than 2 million customer homes. Several government agencies are reviewing the cable acquisition that was announced in May 2015. The Federal Communications Commission must find that the merger serves the public interest, and it is expected to reach a decision this month. The US Department of Justice separately must determine that the consolidation does not pose a threat to competition. The California Public Utilities Commission also must approve the deal. A vote on the matter is scheduled for early May. State regulators are expected to focus heavily on Charter's Internet program, prompting the company to boost its commitments. Charter said it would bolster its pledge to extend high-speed Internet service plans, including increasing broadband speeds in communities throughout Southern California within four years of the deal's closing.


Digital divide is a key factor in the government's review of Charter's merger