In meetings with Federal Communications Commission officials this week, Dish said a combination of Comcast and Time Warner Cable “presents serious competitive concerns for the broadband and video marketplaces and therefore should be denied.”
The details of the meetings were revealed in an FCC filing by Dish.
Dish, led by Chairman Charlie Ergen, told the FCC that “there do not appear to be any conditions that would remedy the harms that would result from the merger.” Dish made its case to FCC Chairman Tom Wheeler and commissioners Mignon Clyburn, Ajit Pai, Jessica Rosenworcel and Michael O'Rielly.
Among Dish's concerns are the leverage a combined Comcast-Time Warner Cable would have in negotiating distribution deals with content suppliers. If the purchase is approved, Comcast's video subscriber base grow would from about 22 million to 30 million homes. It would also be the dominant video supplier in several major markets, including New York and Los Angeles.
“A combined Comcast-TWC will be able to exercise its enormous size to leverage programming content in anti-competitive ways,” Dish said. The result of such leverage would be smaller distributors such as Dish having to pay more for their content.
Dish also said acquiring Time Warner Cable would give Comcast too much power over the Internet and the ability to stifle new online video services that might try to compete against it.
“Comcast-TWC will have at least three ‘choke points' in the broadband pipe where it can harm competing video services: the last mile ‘public Internet' channel to the consumer; the interconnection point; and any managed or specialized service channels, which can act as high-speed lanes and squeeze the capacity of the public Internet portion of the pipe,” Dish told the FCC. “Each choke point provides the ability for the combined company to foreclose the online video offerings of its competitors.”
In addition to its worries about Comcast and Time Warner Cable, Dish also said AT&T's proposed purchase of satellite broadcaster DirecTV also “presents competitive concerns.” Dish had flirted with merging with DirecTV for many years, including as recently as this last spring, but ultimately, DirecTV chose to partner with AT&T.
Dish joins smaller cable operators and Netflix in voicing concerns about a combined Comcast and Time Warner Cable. Some programmers have also worried about the ability of Comcast to squeeze them for lower fees.
The FCC and the Justice Department both are reviewing the Comcast-Time Warner Cable deal and AT&T's acquisition of DirecTV.
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