Stamford-headquartered Charter Communications Inc. has announced it has received approval from the Federal Communications Commission for its $56.7 billion merger with the cable TV and internet service provider Time Warner Cable Inc. and an additional $10.4 billion acquisition of Bright House Networks LLC, both of New York.
Pending a vote by the California Public Utilities Commission scheduled for May 12, the combined company would create the second-largest broadband service provider in the country behind Philadelphia-based Comcast.
The merger would also create the nation’s third-largest provider of video.
The approval was approved by four of the five FCC commissioners with the exception of Ajit Pai.
“I want to thank Chairman Wheeler and Commissioners Clyburn, Rosenworcel, Pai and O”™Rielly for their thorough review of these transactions,” said Tom Rutledge, president and CEO of Charter Communications. “The significant benefits of these transactions are clear: greater competition, more consumer and OTT (over-the-top) friendly broadband policies, broader access to affordable broadband, and added U.S. jobs. The conditions are largely extensions of the longstanding consumer friendly values and practices of our company, and based on the commitments we put forward during the review process. Charter will be a stronger competitor in the broadband and video markets, well positioned to deliver these benefits and more to consumers.”
According to Charter, the company agreed to a number of conditions as part of the FCC approval. Many of the conditions either codified or reflected specific commitments Charter offered proactively at the beginning of the transaction review process, including no data caps or usage-based billing, a commitment to build out high-speed broadband service to unserved and underserved customers, the fastest low-income broadband program of any major service provider, and settlement-free peering.
Settlement-free peering allows for internet content providers to exchange traffic with Charter without fees.
As reported by USA Today, under the conditions Charter would not charge online video streaming companies, such as Netflix, for improved delivery of content; institute any policies that would prevent online video providers from delivering content to consumers through Charter’s networks or serve as retaliation against such providers; and the new Charter will expand its high-speed broadband service to two million more homes within five years.
Charter currently offers service in several regions throughout the U.S. including Fairfield County.
