Cable group wants protections in Comcast merger

A trade association representing small- and medium-sized cable companies wants its members to be protected from the potential hazards of Comcast’s $45 billion proposed merger with Time Warner Cable.

The American Cable Association (ACA) told the Federal Communications Commission (FCC) last week that it was worried that the larger Comcast could force smaller companies to pay high costs for programming. 

{mosads}New conditions should apply for nine years, the group said.

“ACA’s chief goal is for the FCC to make clear that Comcast- and Charter-affiliated programmers are prohibited from demanding rates, terms, and conditions that are discriminatory or higher than fair-market value from [cable companies] and that the enforcement mechanisms for these safeguards work, particularly for small and medium-sized [cable providers],” trade group head Matthew Polka said in a statement.

As part of the merger, Comcast is planning to spin off about 2 million subscribers to a new company that will be jointly owned by Charter, the nation’s third largest cable company.

Comcast owns NBC Universal and would also gain control of new regional sports network after combining with Time Warner Cable. Critics have worried the company could increase prices on those channels to force its smaller competitors to pay more money.

The ACA’s comments came amid a final flurry of public input about the proposed merger as its regulatory review enters the homestretch. Critics of the deal have urged the FCC to block it, on the grounds that it would reduce competition and lead to worse service. 

Executives have said they hope to finalize the deal early next year.