Don Jacobson

[Commentary] Should Comcast's proposed acquisition of Time Warner and subsequent spin-off of its Minnesota customers into a new entity managed by Charter Communications be approved, local customers face a lot of unknowns.

How would the new entity -- tentatively called "NewCo" by Comcast and "SpinCo" by some -- be managed? Would its customer service, technology options and pricing packages be comparable? Would the new company be as willing to invest in system upgrades and better Internet service in a market where consumer options are limited at best?

• Charter: worse broadband, but better TV for some. Christopher Mitchell of the Institute for Local Self-Reliance, favors community-owned networks, but concedes that locals could take some comfort that Comcast offers access to some of the industry’s faster Internet speeds. "But now we're facing the prospect of not only being stuck on cable, but of going backwards.”
• Ownership scheme 'a very bad sign'. Under the arrangement, Comcast would spin off 2.5 million of its current customers, including those in Minneapolis and St. Paul, into the new, publicly traded holding firm in an effort to reduce its national footprint and make its $45.2 billion Time Warner bid more palatable to federal regulators.
• Duopoly alternatives stymied. Whatever may ultimately emerge from a hybrid company, it would likely be more of the same high prices for Internet speeds that are insufficient to keep Minnesota competitive nationally, asserts Joe Caldwell, CEO of locally based provider US Internet.