Cable giants Comcast Corporation and Time Warner Cable are ditching out of their planned merger amidst a heap of regulatory scrutiny.
Combined, Comcast and Time Warner Cable would have had about 30 percent of the pay TV market and more than 50 percent of the broadband market.
Regulators worried that would thwart competition and mean higher prices for consumers.
“All that scale would give Comcast enormous discretion over what reaches Americans, what Americans pay, information flows, customer service—really unlimited power,” says Susan Crawford is co-director of the Berkman Center for Internet and Society at Harvard University.
Crawford also says President Barack Obama’s push to have broadband providers regulated like utilities signaled the government would step up its scrutiny.
But Forrester Research analyst James McQuivey thinks regulators are taking an overly narrow view. He doubts a Comcast/Time Warner Cable merger would’ve kept other players out of the lucrative broadband market.
“Because broadband is going to generate billions of dollars of revenue and billions of dollars of profit in the next ten years, broadband competition is going to happen,” says McQuivey.
McQuivey says that means companies like Google, Amazon and even Facebook could eventually be motivated to enter the fray.
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