Dish Network again said Comcast's planned buy of Time Warner Cable presents serious competitive concerns for the broadband and video markets and should be denied. The combined company would control half of the broadband pipes in the U.S. that have speeds of at least 25 Mbps, Dish said Thursday in an ex parte filing in docket 14-57. The company also “will be on a path to virtual dominance of the high-speed broadband market” because it will pass close to 70 percent of pay-TV households, it said. If the deal is approved, the company would offer only a single over-the-top service, “or perhaps forego altogether launching a nationwide OTT service, thus depriving consumers of important competitive choices,” it said. No conditions “would remedy the serious competitive harms posed by this merger,” Dish said. The filing pertained to meetings with several FCC staff, including from the Media Bureau, Chairman Tom Wheeler’s office and Commissioner Jessica Rosenworcel.
The proposed AT&T buy of DirecTV received support from Information Technology Industry Council and Washington Technology Industry Association. AT&T’s commitments to deploy fixed wireless local loop technology to new AT&T customers “is a significant step toward meeting our nation’s broadband needs,” ITI said in comments posted in docket 14-90 (http://bit.ly/1yVUl0V). The FCC should give significant consideration to the broadband investment and deployment commitments from AT&T, it said. Buying DirecTV is a “natural,” necessary, competitive response to the pressure applied by Comcast, WTIA said (http://bit.ly/1py71CB). Results from the deal include a stronger negotiating position with content creators “to ensure broader access to high value content for consumers,” it said.
AT&T and DirecTV said responses filed in the FCC proceeding on AT&T’s purchase of DirecTV confirm that the transaction is in the public interest. Opponents’ efforts to show countervailing harm to consumers are “unpersuasive” and “transparent attempts to advance parochial agendas,” the companies said in a joint opposition to petitions to deny the deal in docket 14-90. There can be no legitimate concern with the programming matters raised by some opponents, they said. There's no question “that the combined firm will not have sufficient size to exercise monopsony power in content acquisition,” they said. Because the applicants own very little content, “there is no reason to apply program-access requirements beyond those already contained in the Communications Act.” No party seriously disputes that the deal will enable the combined company to reduce the cost of acquiring content, which is the largest and most critical variable cost for multichannel video programming distributors, they said.
The National Black Caucus of State Legislators urged the FCC to approve the proposed AT&T buy of DirecTV. The deal is expected to increase competition, and AT&T has committed to enhance and expand high-speed broadband service availability to millions of customer locations, allowing customers to "gain new service options and choices as well as an additional strong competitor in their local markets,” the caucus said in a letter to the FCC posted Tuesday in docket 14-90 (http://bit.ly/1zb4J64). AT&T has a proud record on diversity, the caucus said.