Charter Communications has been granted approval by Federal Communications Commission to buy Time Warner Cable. In doing so, TWC has become a part of or co-leader in the cable and broadband market. New Charter, a new name taken by Charter, bought the cable TV service for $79 billion worth stock and cash. It will also buy Bright House in a separate deal valued at $10.4 billion.
The combined customers of New Charter and Time Warner Cable Company will be close to 15 million broadband customers. Thus, it will be on the second spot just after Comcast when it comes to customer base, which has around 22.3 million subscribers.
According to New York Times, the justice departments led by Chairman Tom Wheeler gave approval to the deal based on the conditions that it would offer cheaper broadband service to lower income families and protect the interest of streaming video companies. Other conditions, which would last for seven years, include the following:
- The company or New Charter won’t impose data caps or prices based on usage.
- They have also been asked not to charge fees for internet connection to online video providers. This will help the internet providers to deliver large volumes of internet to customers.
- And to protect OVDs from retaliation the department of justice has also prevented it from acting on terms that could harm online video distributer.
- The company has also been asked to add 2 million customers from under served locations and bring choice to at least 1 million customers who did not have the connection before.
Customers are bound to earn enormously from these terms and from a transaction of this magnitude, this is the least that can be expected. In addition, it is a bit of victory for New Charter that the FCC has not included any sort moratorium on price increase.
The conditions will ensure the company’s “current consumer-friendly and pro-broadband business practices,” said Charter spokesman Justin Venech, adding that the new company “will be a leading competitor in the broadband and video markets.”
Compared to a slight win for the Time Warner Cable, it is a clear win for New Charter, and for the subscribers too.