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Paul Merrell

Lawmakers Change Their Tone on AT&T and Time Warner Deal - The New York Times - 0 views

  • When AT&T and Time Warner announced their $85.4 billion deal in October, lawmakers greeted the acquisition frostily. Now their tone is changing.At a hearing on Capitol Hill on Wednesday that was being closely watched for how mega-mergers will be viewed in the coming Trump administration, members of a Senate Judiciary subcommittee that oversees regulatory agencies that decide on mergers said the deal merited tough scrutiny. The chief executives of AT&T and Time Warner were grilled at the hearing about a range of issues related to the deal.But in a change from previous comments, lawmakers also questioned whether traditional ways of evaluating mergers are growing outdated as Silicon Valley companies like Facebook and Google become massive media platforms that threaten the television industry. Their tone was more circumspect than those that immediately followed the deal’s announcement, when lawmakers had been more critical.
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    I think it plain that we need a flat ban on the same company controlling both an ISP and a content company. Comcast, the ISP/content company has proved that it's willing to misuse its ISP powers to disfavor other content companies such as Hulu and Netflix via network throttling. AT&T plus Time Warner would undoubtedly do the same. And Comcast led the charge against net neutrality, attempting to expand its revenue base from its ISP subscribers to include new charges on content providing companies. We need a clean separation between ISPs and content companies.
Paul Merrell

FCC Putting Comcast/Time Warner Cable Investigation On Hold - 0 views

  • On Friday, the U.S. Federal Communications Commission said that it has extended its time to file responses and oppositions for the Comcast/Time Warner merger from October 8 to October 29. This is due to a motion filed by DISH Network, which said that Comcast didn't fully respond to the Commission's Request to Responses and Oppositions. The FCC is taking 180 days to determine if the Comcast and Time Warner merger will be in the best interest of the public. As of Friday, the investigation was at day 85, and it will resume once October 29 arrives. Originally, the investigation was expected to be complete on January 6, 2015. According to Reuters, a number of competitors and consumer advocates have rejected the merger, stating that the combined entity will have too much power over American consumers' viewing habits. Comcast disagrees of course, indicating that Time Warner is not a competitor and that their combined forces would bring better subscription services to a larger consumer audience.
  • Back in August, the FCC sent questions to both Comcast and Time Warner Cable asking for additional information about their broadband and video services, such as their Web traffic management practices. However, the FCC said on Friday that both companies failed to provide enough answers to please the merger reviewers. Comcast disagrees but said it will work with the reviewers to provide the missing information. "We will work with the staff to determine the additional information the FCC is seeking (including the document production that the FCC had asked us to delay filing) and will submit supplemental answers and documents quickly thereafter so that the FCC can complete its review early in 2015," Comcast spokeswoman Sena Fitzmaurice told Reuters.
  • Currently, the FCC is trying to retrieve Comcast's programming and retransmission consent agreements, but media companies have objected to the collection, saying that these documents are highly confidential. However, the documents have made their way to the Justice Department, which is conducting its own review for antitrust issues. The delay in the FCC's deadline also stems from a large 850-page document supplied by Comcast. The FCC indicated that this volume of information is critical to the investigation.
Paul Merrell

Comcast Plans to Drop Time Warner Cable Deal - Bloomberg Business - 0 views

  • 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.
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    Looks like all that online lobbying from the internet community worked. 
Paul Merrell

The FCC is about to kill the free Internet | PandoDaily - 0 views

  • The Federal Communications Commission is poised to ruin the free Internet on a technicality. The group is expected to introduce new net neutrality laws that would allow companies to pay for better access to consumers through deals similar to the one struck by Netflix and Comcast earlier this year. The argument is that those deals don’t technically fall under the net neutrality umbrella, so these new rules won’t apply to them even though they directly affect the Internet. At least the commission is being upfront about its disinterest in protecting the free Internet.
  • The Verge notes that the proposed rules will offer some protections to consumers: The Federal Communication Commission’s proposal for new net neutrality rules will allow internet service providers to charge companies for preferential treatment, effectively undermining the concept of net neutrality, according to The Wall Street Journal. The rules will reportedly allow providers to charge for preferential treatment so long as they offer that treatment to all interested parties on “commercially reasonable” terms, with the FCC will deciding whether the terms are reasonable on a case-by-case basis. Providers will not be able to block individual websites, however. The goal of net neutrality rules is to prevent service providers from discriminating between different content, allowing all types of data and all companies’ data to be treated equally. While it appears that outright blocking of individual services won’t be allowed, the Journal reports that some forms of discrimination will be allowed, though that will apparently not include slowing down websites.
  • Re/code summarizes the discontent with these proposed rules: Consumer groups have complained about that plan because they’re worried that Wheeler’s rules may not hold up in court either. A federal appeals court rejected two previous versions of net neutrality rules after finding fault in the FCC’s legal reasoning. During the latest smackdown, however, the court suggested that the FCC had some authority to impose net neutrality rules under a section of the law that gives the agency the ability to regulate the deployment of broadband lines. Internet activists would prefer that the FCC just re-regulate Internet lines under old rules designed for telephone networks, which they say would give the agency clear authority to police Internet lines. Wheeler has rejected that approach for now. Phone and cable companies, including Comcast, AT&T and Verizon, have vociferously fought that idea over the past few years.
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  • The Chicago Tribune reports on the process directing these rules: The five-member regulatory commission may vote as soon as May to formally propose the rules and collect public comment on them. Virtually all large Internet service providers, such as Verizon Communications Inc. and Time Warner Cable Inc., have pledged to abide by the principles of open Internet reinforced by these rules. But critics have raised concerns that, without a formal rule, the voluntary pledges could be pulled back over time and also leave the door open for deals that would give unequal treatment to websites or services.
  • I wrote about the European Union’s attempts to defend the free Internet: The legislation is meant to provide access to online services ‘without discrimination, restriction or interference, independent of the sender, receiver, type, content, device, service or application.’ For example, ISPs would be barred from slowing down or ‘throttling’ the speed at which one service’s videos are delivered while allowing other services to stream at normal rates. To bastardize Gertrude Stein: a byte is a byte is a byte. Such restrictions would prevent deals like the one Comcast recently made with Netflix, which will allow the service’s videos to reach consumers faster than before. Comcast is also said to be in talks with Apple for a deal that would allow videos from its new streaming video service to reach consumers faster than videos from competitors. The Federal Communications Commission’s net neutrality laws don’t apply to those deals, according to FCC Chairman Tom Wheeler, so they are allowed to continue despite the threat they pose to the free Internet.
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    Cute. Deliberately not using the authority the court of appeals said it could use to impose net neutrality. So Europe can have net neutrality but not in the U.S.
Paul Merrell

FCC Reclaims Powers Over Internet Access Companies (Update3) - BusinessWeek - 0 views

  • May 6 (Bloomberg) -- Federal Communications Commission Chairman Julius Genachowski claimed power to regulate companies that provide Internet access, opening a fight with cable and telephone companies and sparking opposition from Republicans. Comcast Corp., Time Warner Cable Inc. and Cablevision Systems Corp., cable operators that sell Web connections, fell more than 6 percent in New York trading.
  • Genachowski’s plan requires commission approval, and two fellow Democrats have signaled they will support the chairman, giving him a majority. The FCC will vote following a comment period, spokeswoman Jen Howard said in an interview.
  • The FCC had censured Comcast, the largest U.S. cable provider, for blocking customers using the BitTorrent file- sharing software that can send and receive videos. Comcast said it acted to alleviate network congestion. The appeals court sided with Comcast.
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    I wouldn't read too much into the drop in ISP stock prices. NYSE stocks plummeted over-all today, with investors reacting to bad economic news from Greece. The article can be a bit confusing in regard to the FCC move following its court loss to Comcast. That court case did not involve the FCC's telephony regulatory powers. The FCC is now rebuilding its prior position on a new legal foundation, a separate title of the enabling legislation that deals with telephone regulation rather than broadband regulation. 
Paul Merrell

Google reveals where AT&T, Comcast, Time Warner Cable will next offer Gbps broadband * ... - 0 views

  • Google has named the next four areas in the US to get its gigabit-a-second fiber broadband. The advertising giant said on Tuesday it will next roll out high-speed connections to 18 cities in and around Atlanta, GA; Charlotte, NC; Raleigh-Durham, NC; and Nashville, TN. Charlotte city officials had indicated they were expecting to be named as one of the next places to feel Google's cable. The expansion will bring the total number of areas with Google Fiber deployments to seven: the California biz already offers fiber broadband in and around Kansas City, MO, Austin, TX, and Provo, UT.
  • Google charges $70 a month for gigabit internet, $120 if you want TV with it, or free if you're happy with 5Mbit/s for the downlink. Only the freebie option requires a $300 installation fee. Despite the price tag, the service is hotly anticipated in the few chosen cities. The presence of Google Fiber also has the side-effect of spurring rival carriers, such as AT&T, to offer their own high-speed broadband services in the area.
  • Later this year, the Chocolate Factory will also make its decision on where the next set of Fiber rollouts will take place. Five areas are being considered: Portland, OR; San Jose, CA; Salt Lake City, UT; Phoenix, AZ; and San Antonio, TX. ®
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