Andre Mouton
3 myths about 'bad for America' cable merger
[Commentary] Comcast struck a nerve in February with its proposed merger with Time Warner Cable, and no wonder. Rightly or wrongly, the cable giant has become the face for rising TV and Internet prices, abrasive customer policies, and a broadband system that many believe to be corrupt and uncompetitive.
Its face-off with Netflix has put Comcast on the wrong side of popular opinion, and a troubled history with net neutrality has raised eyebrows (and blood pressures) in Silicon Valley. But is the Comcast/TWC merger really a bad thing?
- Myth No. 1: The merger is bad for customers because service will inevitably cost more. Comcast is also ahead of the pack when it comes to Internet data caps and overage charges. If a progressive pricing scheme were introduced, it might allow for more affordable contracts, and the majority of Comcast and TWC customers would stand to benefit. Perhaps I'd be able to keep my budget plan after all.
- Myth No. 2: The merger is bad for competition. According to the government, 88% of Americans have access to two or more wireline providers. Ninety percent have access to four or more wireless providers. Cable faces competition from DSL, satellite, and LTE, and while these services aren't as fast as cable, they commonly offer download speeds of 10-15 mbps. That's enough to stream three HD movies simultaneously -- and more than enough for most families. Meanwhile, Google, AT&T, and Verizon are rolling out fiber-optic networks in major cities around the country; a quarter of the population now has access.
- Myth No. 3: The merger is bad for America. A broadband study from the Information Technology & Innovation Foundation finds that "of the nations that lead the United States in any of the four key metrics (deployment, adoption, speed, and price), no nation leads in more than two." The ITIF also finds that Americans have a greater variety of options when it comes to broadband, and a more progressive pricing scheme. So let's take it easy with the torches and the pitchforks.