Group items tagged

Fourteen months after unveiling a $45.2 billion merger that would create a new Internet and cable giant, Comcast Corp. is planning to walk away from its proposed takeover of Time Warner Cable Inc., people with knowledge of the matter said. The decision marks a swift unraveling of a deal that awaited federal approval for more than a year. Opposition from the U.S. Justice Department and Federal Communications Commission took shape over the past week, leaving officials of the two companies to conclude the deal wouldn’t pass muster.

Comcast’s board will meet to finalize the decision on Thursday, and an announcement may come as soon as Friday, said one of the people, who asked not to be identified because the information is private. Time Warner Cable executives plan to tell shareholders on an earnings conference call next Thursday how the company can survive independently, the person said.

On Wednesday, FCC staff joined lawyers at the Justice Department opposing the transaction. That day, FCC officials told representatives of the two companies they are leaning toward concluding the merger doesn’t help consumers, a person with knowledge of the matter said. The FCC’s plan to call a hearing effectively killed the deal’s chances of success. An FCC hearing can take months to complete and drag out the approval process beyond the companies’ time frame for completion. Bloomberg News reported last week that Justice Department staff was leaning against the deal. Senators including Al Franken, a Democrat from Minnesota, also voiced opposition. “Comcast’s withdrawal of its proposed merger with Time Warner Cable would be spectacularly good news for consumers,” Michael Copps, a Democratic former FCC commissioner working with Common Cause to oppose the deal, said in a statement.

On Feb. 25, the House of Representatives passed by a vote of 295-114 under suspension of the rules a bill aimed at creating a statutory right for owners of cellphones to be able to “unlock” their phones so that they can use the same phone with a different service provider.The Unlocking Consumer Choice Act (H.R. 1123), which was introduced in March by Rep. Robert W. Goodlatte (R-Va.), chairman of the House Judiciary Committee, was widely supported by members on both sides of the aisle.However, some representatives expressed objections to the current form of the legislation and even suggested that statutory protection of unlocking was no longer necessary, given that the Federal Communications Commission had in December persuaded the wireless industry to allow unlocking on a voluntary basis (241 PTD, 12/16/13).

On the morning of the day that the vote was to take place, several representatives who had previously supported the bill, issued a letter to their colleagues urging that H.R. 1123 be defeated on the floor of the House. The letter--signed by Reps. Zoe Lofgren (D-Calif.), Anna G. Eshoo (D-Calif.), Thomas H. Massie (R-Ky.), and Jared S. Polis (D-Colo.)--objected to a provision added to the bill after its approval by the full committee in July (148 PTD, 8/1/13).The new provision would exempt from protection “bulk unlocking” of phones. This provision might have something to with concerns expressed by some members of the Judiciary Committee in last year's hearings on the bill that permitting individual consumers to unlock their phones should not extend to businesses who charge consumers to unlock their phones for them.The letter referred to statements by the Electronic Frontier Foundation and Public Knowledge, consumer groups that had both supported the bill in the past, in which they withdrew their support because of the appearance of the new provision.