14 DAY TRIAL // Comcast has sent the FCC a file in which it claims that companies lobbying against its merger with Time Warner Cable are hoping to force it into making concessions that benefit them.
In a mind-numbing document that has over 320 pages, Comcast says that Netflix, Discovery and all others that are opposing the $45 billion (€35.3 billion) merger deal are actually looking to obtain a favorable agreement on carrying its video stream packets or higher fees to carry TV channels.
“The significance of this extortion lies in not just the sheer Audacity of some of the demands, but also the fact that each of the entities making the 'ask' has all but conceded that if its individual business interests are met, then it has no concern whatsoever about the state of the industry, supposed market power going forward, or harm to consumers, competitors, or new entrants,” Comcast writes in the file it sent to the FCC.
The telco believes that the transaction it wants to make is viewed as an opportunity for companies such as the ones mentioned above to leverage their individual interests. Furthermore, there’s no real compelling argument to oppose the transaction which wouldn’t, as they say, harm the public interest.
Many have opposed the merger between Comcast and Time Warner Cable. Arguments include the death of competition among telcos. Comcast has defended its deal, saying that it fears companies such as Google and Netflix and their growth on the market. The company also added that competitiveness wouldn’t be an issue because their areas barely intertwine. This is, of course, the exact reason why there’s barely any competition in the telecommunications and Internet industries in the United States.
Discovery: Comcast tries to divert attention from the real issue
Discovery has taken a step forward and addressed the statements made by Comcast in the FCC letter, saying the company is trying to divert attention away from the real issue.
“Comcast chooses to not talk about the substantial program discounts they currently get, or what they would to post-merger to demand extreme discounts from cable programmers or block the launch of new networks and brands,” Discovery said.
Netflix also issued a sharp comment on the topic. The video streaming service told The Register that it is not extortion to demand that Comcast provide its own customers the broadband speeds they’ve paid for so they can enjoy Netflix. However, it is extortion when Comcast doesn’t provide what customers pay for unless Netflix agrees to pay “a ransom.”
The company is referring, of course, to the situation it was in months ago when, due to a fast drop in connection speed, it was forced to sign a peering deal with Comcast and other telcos. It said at the time that they had been bullied into signing the deal. Unsurprisingly, Comcast users immediately started having speedier access to Netflix as soon as the ink was dry.