Tags: time warner | prices | comcast | deal

Time Warner Prices: Consumer Groups Worry About Hike If Comcast Deal OK'd

Thursday, 10 Apr 2014 06:50 PM

By Morgan Chilson

Time Warner and Comcast argued for three hours Wednesday before a Senate Judiciary Committee, seeking approval of a deal to combine Time Warner’s cable assets with Comcast, and consumer groups are questioning whether cable prices would spike should the deal get approval.

Comcast’s Executive Vice President David L. Cohen told Forbes that bigger can be good, and that the company needs to grow to face huge competitors like Apple and Google.

Urgent: Do You Approve Or Disapprove of President Obama's Job Performance? Vote Now in Urgent Poll

Cohen said Comcast and Time Warner don’t compete in any market currently, which means a merger wouldn’t change the competition. In fact, he argued, more competition is coming in the industry from DSL.

But 56 groups, including the Consumers Union, MoveOn.org, and the National Organization for Women, sent a letter to government entities this week opposing the merger.

“This merger is a bad deal for consumers that would give Comcast even greater control of the market and little incentive to improve prices or customer service,” said Delara Derakhshani, policy counsel for Consumers Union, in a statement. “It’s no wonder consumers don’t think this merger is in the public’s interest.”

At the hearing, Senate Judiciary Committee Chair Patrick Leahy asked Cohen about the impact on rates.

“There is nothing in this transaction that will make anyone’s bills go up. ... Consumers today are in the driver’s seat,” Cohen answered, Deadline reported. The Comcast VP also discussed programming costs, which he said rose 98 percent in the past 10 years.

Comcast is the largest cable and broadband company, with Time Warner following as the second top cable company and third biggest broadband provider. A merger of the two would give Comcast about 40 percent of broadband customers and two-thirds of cable customers, the Consumers Union said.

It said both companies have consistently ranked low in customer service.

"It bothers us that we have so much trouble delivering a really high-quality service level to our customers on a consistent basis," Cohen said at the hearing, according to The Wall Street Journal, and adding the company was “laser-focused” on working to improve in that area.

Urgent: Assess Your Heart Attack Risk in Minutes. Click Here.

Related Stories:

© 2015 Newsmax. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
You May Also Like

Kentucky Senator Brandon Smith Wants Out of DUI With Immunity Law

Friday, 23 Jan 2015 19:20 PM

Kentucky state Senator Brandon Smith, arrested earlier this month on a DUI charge, is making an effort to get the charge . . .

School Bus Pentagram? Woman Outraged Over Satanic Brake Light Symbol

Friday, 23 Jan 2015 18:53 PM

A Tennessee woman is outraged after spotting what she says is a satanic pentagram formed by the brake lights on a school . . .

Rapper Tiny Doo May Face Long Jail Sentence Over Lyrics

Friday, 23 Jan 2015 18:10 PM

San Diego rapper Tiny Doo is facing a possible 25-year prison sentence for his violent song lyrics under a little-known  . . .

Top Stories

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved