My 2 cents on the Comcast-Time Warner Merger

Comcast has been touting the fast that “Rival” Time-Warner does not compete with Comcast in any zipcode, so merging the two companies would have no impact on the number of provides in a given area. http://www.cnet.com/news/will-comcast-and-time-warner-be-at-t-and-t-mobile-redux/

My question is how can two multi-billion dollar companies, in the same market, not actually compete in any geographical area?

If we look at any other industry, there is overlap. Cell phone providers, fast food restaurants, taxi services, department store, airlines, and the list goes on and on.

The answer can only be collusion. The companies have an agreement to stay out of each other’s way and reduce competition in the agreed-upon territories This is a business practice called “Dividing Territories” and its quite illegal. http://en.wikipedia.org/wiki/Dividing_territories

The merger will probably go through due to the MASSIVE amount of money that the telcom have spent on congress. http://time.com/79569/comcast-has-about-76-lobbyists-working-washington-on-cable-merger-this-is-why/

With all the news of the new Net Neutrality regs, http://online.wsj.com/news/articles/SB10001424052702303834304579522111556080036 and the recent comcast-netflix deal http://knowmore.washingtonpost.com/2014/04/25/this-hilarious-graph-of-netflix-speeds-shows-the-importance-of-net-neutrality/ competition in this market is paramount. Reducing the players is a bad move, even if they aren’t competing with each other.

+Google Fiber save us all

Originally posted https://plus.google.com/107295341423763791593/posts/LDpUuN5Dawr

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