FCC Relieves Condition Set In Charter’s Acquisition Of Time Warner Cable

The Federal Communications Commission (FCC) has brought out new measures to relieve the conditions set on the acquisition of Time Warner Cable by Charter. This acquisition was carried out last year, which required the company to extend its best internet service to about one million homes in areas having a competing internet service. The three FCC commissioners have approved this removal of the conditions and collectively passed the new alterations done on the condition.

The acquisition of Time Warner Cable by Charter attained the approval of FCC last year. However, this was subjected to numerous conditions set by the Commission. Extension of high-speed internet service to approximately 2 million homes was one of the major requirements imposed by the condition. In addition, the extension of these services must be in areas already having another high-speed internet service provider.

This has led to a severe backlash from smaller cable companies in the region citing increasing competition with major telecom companies. Mathew Polka, President and CEO of the American Cable Association said, “This overbuild threat, added by then-FCC Chairman Wheeler at the eleventh hour of the merger approval, undermined these operators’ ability to make investments that would benefit their existing subscribers or expand their networks to reach unserved households.”

However, the relaxing of the conditions by the FCC still require Charter to extend its cheap internet service to about 2 million homes. This also means that it is not necessary for areas that already have a competing internet service. FCC Chairman Ajit Pai stated that, “The difference now is that the beneficiaries will be consumers currently on the wrong side of the digital divide. That’s a major difference, and one that will go a long way toward helping deliver online opportunity to all Americans.”

Mignon Clybur, the commissioner in the region agreed to this new decision by the FCC. She stated that, “It has become clear that forcing New Charter into competing with another carrier incentivizes the company to overbuild where the weakest potential competition currently exists. By removing the overbuild condition, we at least give New Charter the freedom to serve more unserved communities.”

Moreover, according to a Charter spokesperson’s comment, “By modifying the overbuilding condition, the FCC enables Charter to more fully devote our resources and attention to building out high-speed broadband to areas without it today.” This means that Charter can now offer its best internet services to more areas.