The media giant Comcast is set to grow it’s empire once again. Only three years after the acquisition of NBC Universal, a deal has been announced to merge Comcast with regional cable and telecom provider Time Warner Cable. Valued at just over $45 billion, the merger would make Comcast the largest cable and internet provider in the United States. Over 32 million Internet service customers across the country would be part of the new company – which translates to just under 30% of the marketplace.
While the Comcast purchase of NBC Universal pushed the company further into the entertainment and distribution realms, this deal has a much more immediate impact on business owners and telecom customers across the country. The good news that comes out of this is a commitment to improve current telecommunications infrastructure as a result of the merger. If all promises are kept, this would result in a faster, more reliable experience for both business and residential consumers. Additionally, Comcast would be bound to a previous agreement forcing the telecom giant to offer Internet access as a standalone product, and treat all Internet traffic the same – be it for voice, data, or streaming video.
All of those promises and agreements are good news for the customer. And while those are good, many consumer advocate groups are warning of the dangers this merger could create. For instance, with the decrease in competition comes the threat of rising prices. Executives at Comcast told reporters during a press conference that they don’t see the price of internet service going down in the future. And considering that Comcast already has a significant hold on many entertainment holdings, content control and pricing are both of concern to many advocates as this process continues.
So what does this mean for your business and your telecom infrastructure? While the Comcast-Time Warner deal isn’t set to close until the end of 2014, now is a good time to consider what your infrastructure needs will be in the future. It’s never too early to audit the level of service you have now, and weigh that against future demands in order to budget for additional costs. By keeping ahead of the situation, you can ultimately put your company in a position to save money with a higher level of service in the future.
Despite an ever changing landscape, having the best information is invaluable to weathering new situations. As the Comcast-Time Warner merger proceeds, we’ll continue to monitor the situation, and provide our partners with the best solutions for their needs.