Comcast tells FCC critics of its NBC deal are 'self-serving'

Comcast fired back at its critics July 21, telling the Federal Communication Commission that the cable giant's proposed merger with NBC Universal will not hurt consumers or competitors.

"Despite the self-serving claims of various competitors and the predictable responses from certain familiar critics, this transaction will not diminish competition in any relevant market ... the combined entity cannot and will not pursue anti-foreclosure strategies, despite the contrived efforts of certain opponents to show otherwise," Comcast said in its filing. The filing at the FCC is part of the back-and-forth Comcast and NBC Universal have been engaged in with media watchdogs, consumer activist groups, competitors and politicians over what impact their proposed $30-billion marriage will have on the public as well as on the media industry.

The FCC, along with the Justice Department, are reviewing the deal and will decide if it should be given a green light and what, if any, conditions should be put on the two companies as part of any approval. Opponents of the deal include public interest groups such as Free Press and Media Access Project as well as Bloomberg LP, the business news giant which owns a cable network that competes against NBC's financial channel CNBC. Various factions of the creative community have expressed concern that the deal will further squeeze independent producers, and some minority groups are worried that the deal will harm diversity both in front of the camera and in the executive suites. In a 327-page response to its critics, Comcast argued that the merger of its cable systems with NBC's content is primarily a vertical one and hence "does not pose any of the traditional harms that some associate with traditional media consolidation."

In addition, Comcast, General Electric and NBC Universal claim their new joint venture entity won't dominate the TV market -- declaring it ranks fourth among media companies in terms of its advertising and affiliate revenue. The proposed $28 billion entity will have only a 12 percent share of advertising and affiliate revenue in the national cable market -- and will sit behind Disney, Time Warner and Viacom and only just ahead of News Corp. (owner of The Post), Comcast claimed. That ranking is surprising given that NBC Universal houses some of the most profitable cable stations around. They include USA Network, regularly a No. 1 network in terms of audience, which Bernstein Research estimated would earn $1.7 billion in revenue in 2010, and CNBC, which makes profits in excess of $300 million.