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Comcast Acquiring Time Warner Cable In All Stock Deal Worth $45.2 Billion

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Re: Comcast Acquiring Time Warner Cable In All Stock Deal Worth $45.2 Billion

#191
post #154

Does it strike anyone else as curious that the two largest cable/internet providers merge, and it doesn't matter because they already don't compete? It might be a sign that something's odd if the premise is that there's no competition between identical products to harm in the first place.

No. I believe in the concept of a natural monopoly for most utilities though - Building outside plant is horrendously expensive - it to me makes as much sense to have multiple cable providers as it does multiple sets of power/telephone/water/sewer infrastructure. I'd even like to see a fewer wireless carriers (consider that each for carrier are spending billions of dollars to roll out what amount to essentially ident…

> That said - the only way natural monopolies do not become abusive natural monopolies is thru intense and careful regulation - mostly by setting a fixed rate of return for the infrastructure, and then building rates from that.

Or better yet, having the natural monopoly infrastructure, narrowly defined, run by local government and rented out at standard rates to all private service providers.... You know, have the city run roads, not taxi cabs.

The same thing could be done here regarding the internet component. City and local governments could set up last mile infrastructure and rent out access to these lines to ISP's....

Re: Comcast Acquiring Time Warner Cable In All Stock Deal Worth $45.2 Billion

#192
post #154

Does it strike anyone else as curious that the two largest cable/internet providers merge, and it doesn't matter because they already don't compete? It might be a sign that something's odd if the premise is that there's no competition between identical products to harm in the first place.

No. I believe in the concept of a natural monopoly for most utilities though - Building outside plant is horrendously expensive - it to me makes as much sense to have multiple cable providers as it does multiple sets of power/telephone/water/sewer infrastructure. I'd even like to see a fewer wireless carriers (consider that each for carrier are spending billions of dollars to roll out what amount to essentially ident…

This is very much in line with my own thinking.

Wireless (cellular/radio/tv/...) affords some competition.

Wired (power/water/sewage/copper/fiber) affords little last-mile competition it seems like. Unless municipalities made a real effort to make adding wire a simple proposition which does appear to happen in some places (Scandinavia springs to mind for some reason).

These are real issues that keep cropping up and it would be nice to do some actual social and economic simulations and historical analysis to see which models benefit whom.

The classic blunder in my neck of the woods was the British Rail privatization fiasco. Network Rail owned the tracks which suddenly ceased seeing any innovation and funding (so no high-speed-rail like practically everywhere else on the European continent). Train providers get their own non-overlapping corridors just like cable providers in the USA. Don't know if there is a limit to the train provider's size though. Same happened with water. Please correct me if I am wrong or painting this in too negative a light.

Re: Comcast Acquiring Time Warner Cable In All Stock Deal Worth $45.2 Billion

#193

Earlier quoted context omitted.

> To play devil's advocate, what it means is that Comcast has the better business model. After all, that's why Apple and Samsung dominate the cellular industry. That is devil's idiot. I can choose between 4 different cell carriers and dozens of smartphone makers. Many people only have one option if they want >10Mbps internet. Fortunately I get to choose between Optimum and FiOS. Optimum gives me 60/25 for the basic r…

I was addressing chimeracoder's point about vertical integration. There might be tons of Android manufactures peddling phones, but Apple and Samsung are eating up all the profits because they are verticicaly integrated. That's the major play Comcast is making. I wouldn't be surprised to see this coming soon to wireless. Imagine movie caching servers integrated into the backhaul network instead of going over the publi…

Netflix already serve their content from servers colo'd at ISPs. Big FreeBSD boxes.

Re: Comcast Acquiring Time Warner Cable In All Stock Deal Worth $45.2 Billion

#194

If this merger goes thru, (and the AnitTrust people would have to be really asleep at the wheel for that) two things are certain: 1) Americans can expect some of the worst Cable price gouging they have ever seen 2) NetFlix, Amazon Prime et al will become really popular as a result of all the customers saying "FU ComcastWarner"

I wouldn't say it won't happen, but I don't know how much of #1 impact there will be considering it's already not practical to pull competing cable operator to begin with. (Unlike, mobile carriers, for instance.)

Obviously, I'm just speaking out from my experience, but how common it is that certain region is served by multiple cable operators? (And that you get to choose from?)

Re: Comcast Acquiring Time Warner Cable In All Stock Deal Worth $45.2 Billion

#195

Earlier quoted context omitted.

Netflix partnering with, or potentially acquired by, Amazon to take on other platforms makes sense. There needs to be consolidation and I think Bezos could do a better job bringing in bigger licensing deals.

So your solution to defeating a monopoly is to form a monopoly?

Google is already positioning similarly with YouTube, Google Fiber, and plays for wireless service here and in floating balloons around the planet.

Tripilolopopy

Re: Comcast Acquiring Time Warner Cable In All Stock Deal Worth $45.2 Billion

#197

Earlier quoted context omitted.

So your solution to defeating a monopoly is to form a monopoly?

That is called duopoly, and is less bad than a monopoly.

A duopoly might help in America but for the rest of us (at least where I'm from) competition is working fine. I can choose between around 5 different providers for internet and/or TV with prices starting at as little as $35 per month for unlimited internet at around 20mbps download speed. I can also choose online between Netflix, Amazon/LoveFilm, free demand services such as BBC iPlayer, ITV Player, 4OD, and paid on demand services that come with certain TV packages (SKY on demand). In the UK competition in this space has never looked better in my opinion. It always amazes me that America, the champion of the free market, has such a fucked up telecoms (and by extension TV) industry.

Re: Comcast Acquiring Time Warner Cable In All Stock Deal Worth $45.2 Billion

#198

If this merger goes thru, (and the AnitTrust people would have to be really asleep at the wheel for that) two things are certain: 1) Americans can expect some of the worst Cable price gouging they have ever seen 2) NetFlix, Amazon Prime et al will become really popular as a result of all the customers saying "FU ComcastWarner"

> 2) NetFlix, Amazon Prime et al will become really popular as a result of all the customers saying "FU ComcastWarner" I agree with your first point, but your second point doesn't follow. If anything, Comcast will price gouge Netflix out of business, and we'll be back to being stuck watching their awful "On Demand" instead. They can do this, because Comcast owns the content (NBC), the delivery mechanism for said cont…

And how would this 'FU ComcastWarner' work in America? Anywhere you live you only have the choice of paying your cable provider, your telephone carrier or your wireless carrier for internet. - DSL infrastructure hasn't evolved in a decade or more. You're lucky to get mid-single digit megabits/sec. I had 0.7 mpbs offered to me in Mountain View by at&t. - Cable is the only speedy one, but they can price gouge you, limit the amount of traffic (see Comcast) and decide who to prioritize - Wireless is getting faster, but is severely limited in transfer packages. You'd be paying an arm and leg just to get a few Gigabytes in total per month.

So tell me - how does this 'FU ComcastWarner' gonna work? Move to the one or two towns that have alternative internet (e.g. Fibre)?

Re: Comcast Acquiring Time Warner Cable In All Stock Deal Worth $45.2 Billion

#199
post #65

Earlier quoted context omitted.

Or cable is just a natural monopoly.

The physical network is absolutely a natural monopoly - the cost to run copper out to every house in a region is fixed, and any player in the market would need to do just that in order to compete effectively. From a cost efficiency perspective, the ideal number of such networks is one, just as it is for electricity and water. What's different is that electricity tends to be heavily regulated, and water is generally a…

I'm not an expert, but I think what you describe is exactly what happened with telephone service in the United States (i.e, the breakup of Ma Bell, etc.)

Re: Comcast Acquiring Time Warner Cable In All Stock Deal Worth $45.2 Billion

#200

If this merger goes thru, (and the AnitTrust people would have to be really asleep at the wheel for that) two things are certain: 1) Americans can expect some of the worst Cable price gouging they have ever seen 2) NetFlix, Amazon Prime et al will become really popular as a result of all the customers saying "FU ComcastWarner"

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