Comcast Corporation (NASDAQ:CMCSA) Should Not Be Allowed To Merge With Warner Cable

Comcast Corporation (NASDAQ:CMCSA) is the country’s largest cable and broadband provider and has earned a bad name by big price hikes and providing poor customer service. In spite of this it is trying hard to convince the federal government to allow its merger, with fellow media giant Time Warner cable. This merger will make Comcast even bigger and powerful. The federal regulators are busy reviewing the megadeal in Washington DC. If this deal goes through Comcast will get almost complete control over what people watch on TV and how much they are charged for it.

Where do analyst foresee upcoming resistance in CMCSA?

What Does The Consumers Union Think?

According to the Consumers Union, the policy and advocacy arm of the Consumer Reports, this merger will be detrimental to the interests of the consumers. As a combination the two companies will not have much incentive to treat the consumers any better and things are likely to go from bad to worse with higher prices, fewer choices and more poor service. The Consumers Union has been presenting its case to the Federal Communications Commission, the Justice Department, members of Congress and other policymakers, along with the state Attorney Generals; to explain reasons why this deal should be rejected.

This month they are launching a new ad campaign to compel regulators do what is in the interest of the consumers. These ads are both in the form of print and online ads and are running in Washington DC market as well as on the radio. Their basic message is that Comcast tomorrow will be worse than what it is today.

The ad brings to the notice of the audience that, with this merger the company will gain control over 60% of the cable TV market. This 60% will more than half of the high-speed broadband service in the United States. The proposed merger will give Comcast excessive control over the key programming along with the routes to deliver these programs into American homes.

About the Author

Sally joined the US Markets Daily News Team in April 2011 as a Multimedia Journalist.

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