One of the factors that regulators might consider when
examining the merits of the Comcast-Time Warner Cable and AT&T-DirecTV
mergers, is it likely that other firms may consider it to be in their best
interest to find acquisitions partners. Here are some possibilities:
Firm
|
Possible Partner(s)
|
Reasoning
|
Concerns
|
Charter
|
Cox, Cablevision
|
Expand national footprint in MVPD and broadband to match the scale of
a Comcast-TWC
|
|
Verizon
|
Charter, Cox, Cablevision
|
Expand national footprint in MVPD and broadband to match the scale of
a Comcast-TWC, and expand product bundling to more consumers. Bundles could include wireline and wireless
telephony, video, and broadband
|
The number of MVPD and broadband competitors in some local markets
declines by one, increasing both local and national concentration
|
Verizon
|
Dish
|
Greater size to negotiate more favorable programming deals. Greater opportunity to bundle telephony,
video, and data services
|
The number of MVPD competitors in some local markets declines by one,
increasing both local and national concentration
|
Sprint or T-Mobile
|
MVPD (Charter, Cox, Cablevision)
|
Scope economies from product bundles of wireless with Pay-TV and
broadband
|
|
Sprint or T-Mobile
|
Dish
|
Scope economies from product bundles of wireless with Pay-TV and
broadband
|
|
Verizon
|
ABC or CBS or other content providers
|
Content is king
|
Foreclosure or discrimination of competitive, non-affiliated content
providers.
|
Dish
|
ABC or CBS or other content providers
|
Content is king
|
Foreclosure or discrimination of competitive, non-affiliated content
providers.
|
Content provider (ABC, CBS, Netflix, etc.)
|
Broadband provider (small or large)
|
Content is king. Broadband (distribution)
is queen.
|
Foreclosure or discrimination of competitive, non-affiliated content
providers.
|
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