Charter Communications aims to become ?powerhouse?

Charter Communications has struck a $55 billion deal to acquire Time Warner Cable (TWC) and Bright House. The proposed deal would give Charter a customer base of 24 million and result in a consolidation that the New York Timescalled “a powerhouse” in the cable and broadband industry.

Greater access to consumers and expanding high-speed Internet access have been important components in a number of recently proposed telecommunications deals, including theAT&T/DirecTV deal and theVerizon/AOL deal. Charter’s proposal continues the trend. As the New York Timesexplains, broadband is the future of the telecommunications industry, and it’s at the center of the Charter/Time Warner deal:

When Charter Communications announced a pair of deals to acquire Time Warner Cable and Bright House Networks for a total of $67.1 billion, it put the focus squarely on the cable industry’s future: broadband.

[…]

Charter’s promises underscored the features that it hopes will appeal to regulators and consumers alike: that Internet service now is the most important component of a cable package as the ultimate gateway to information and entertainment. And that Charter’s new heft -- the acquisitions would approximately quadruple its customer base to about 24 million, compared with Comcast’s 27 million -- will give it more resources and incentives to introduce innovation and competitive services.

The Charter deal comes weeks after Comcastfailed to acquire Time Warner, and comparisons between Comcast’s and Charter’s proposals have already begun. In an article titled “Charter’s Deal with TWC More Likely to Get Approval Than Comcast,” the Wall Street Journalreports:

A Charter Communications merger with Time Warner Cable stands a better shot at regulatory approval than Comcast’s ill-fated attempt to purchase the cable giant last year, according to cable-industry analysts and executives. The deal must pass muster with antitrust officials and the Federal Communications Commission, who were prepared to block the Comcast-Time Warner Cable deal on the grounds the combined company would have too much power over the broadband and online video markets.

[…]

‘The facts here are a lot more favorable to Charter than they were to Comcast,’ said Former Justice Department antitrust official Gene Kimmelman, now the head of the advocacy group Public Knowledge. Despite a mood of optimism, some cable-industry observers emphasize caution.”

Expecting these comparisons to the Comcast-Time Warner merger, FCC Chairman Wheeler issued astatement explaining that each proposed deal is considered individually:

Charter Deal for the Time Warner Cable Signals Shift in TV Industry (New York Times, May 26, 2015)

AT&T, DirecTV deal moving forward (Speed Matters, May 1, 2015)

Verizon strikes deal to buy AOL (Speed Matters, May 18, 2015)

Broadband at the Center of Charter-Time Warner Cable Deal (New York Times, May 26, 2015)

It’s official: The Comcast, Time Warner deal is dead (Speed Matters, Apr. 24, 2015)

Charter’s Deal With TWC More Likely to Get Approval Than Comcast (Wall Street Journal, May 26, 2015)

Statement of Chairman Tom Wheeler on Charter/Time Warner/Bright House Announcement (FCC, May, 26, 2015)