Comcast Exec Says Time Warner Cable Deal Will Be Great for America

Comcast’s proposed $45 billion purchase of Time Warner Cable won’t violate US antitrust laws or federal public interest rules, a senior Comcast executive said.

On the contrary, a merger between the two largest cable companies in the country will be great for consumers, Comcast executive vice president David Cohen said. Cohen made his comments as opposition to the deal continues to grow from public interest groups, lawmakers, and industry observers. Critics of the deal say the merger would concentrate too much market power in the hands of a single media and entertainment behemoth, potentially leading to higher prices for consumers. Comcast dismisses such fears and insists that the merger will result in better service for consumers.

Cohen acknowledges that the deal’s implications for the broadband market are “appropriate to think about and discuss,” but argues that it’s “not a very scary story,” due to increasing competition from wireless broadband. “I think it’s indisputable today that wireless is certainly beginning to be an effective competitor and substitute for at least many uses of broadband,” Cohen said.

Comcast argues that bigger is better. “Sometimes big is a bad thing,” said Cohen. “I acknowledge that. But sometimes big is really important, really necessary and really good. And that would tend to be in high capital expenditure industries, in industries where innovation is fast moving and where you need a lot of investment in R&D and innovation to keep pace. And that is our industry.” He added: “The rationale for this transaction is all about scale. We are going to get bigger.”