On Monday, Americans for Tax Reform and Digital Liberty supported a coalition letter to the Senate Judiciary Committee in support of the Comcast and Time Warner Cable (“TWC”) merger, and more generally, allowing commercial enterprises to organize and operate freely in a market economy.
There is no evidence that the Comcast/TWC merger would create any actual or potential market failure. Indeed, customers stand to gain. Comcast offers its customers broadband internet speeds that are anywhere from two to ten times faster than TWC, and Comcast has gone on record stating it plans to upgrade TWC’s slower networks. Additionally, Comcast offers more streaming, high definition, on demand, and mobile video options than TWC. Combining the companies could bring significant improvements in these areas to TWC customers.
Some opponents of the merger worry that it will provide Comcast with a monopoly on Internet broadband service. However, their concerns are misplaced. Post-merger, Comcast would have a 20 percent market share, hardly a monopoly. The proposed Comcast/TWC transaction will not monopolize the industry or impair competition. Instead, it will provide current TWC customers with more options and better service.
To read the full letter, click here.