What the Charter-Time Warner Merger Will Mean For Consumers
Posted by Whiteboard Animators at avril 27th, 2016
Charter Communications is all set to buy out Time Warner Cable and Bright House Networks, forming the second-largest cable company in the U.S., known as New Charter. The merger comes with a few conditions designed to protect consumers.
The FCC and Department of Justice have approved conditions that will prevent New Charter from charging customers usage-based prices for the next seven years. They’re also prohibited from putting data caps on broadband services like Netflix. The goal is to keep things competitive by not punishing users for using services like Netflix, HBO GO, Hulu, and so on. The LA Times explains:
By banning data caps and usage-based pricing, regulators are preventing Charter from making it more expensive for its broadband customers to be heavy users of online video services, particularly those that offer data-gobbling high-definition movies. The flip side is that the ban forces Charter to spread those users’ costs onto its entire customer base, which rules out the possibility of light users paying lower monthly rates.
The ban also prohibits interconnection fees, a charge some ISPs impose on content providers for access to customers. Those are the major conditions, but you can read more about how the merger will affect customers at the link below.
Photo by Mike Mozart.