Comcast too big?

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Broadband Reports points out that, “Comcast’s joint bid with Time Warner to purchase the bankrupt Adelphia Communications Corp.’s cable system last week faces a potential roadblock, reports the Washington Post.” As part of the 1992 Cable Act, the FCC set a limit that no single company could own cable systems reaching more than ’30 percent’ of the nation’s customers. Comcast currently has 29% of the market. I also had pointed out that this deal could mean serious troubles for start-ups vying to get a piece of the cable broadband spending bounty.

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Staci D. Kramer

It would be a mistake to assume that either TW or Comcast would keep all of the Adelphia systems. Consolidation can create opportunities for smaller MSOs or even new companies as MSOs slough off systems that don’t fit in their plans. (It also can mean more consolidation in certain markets as MSOs trade or sell systems to aggregate subs.) Of course, this doesn’t answer the “is Comcast too big question” outside of the legalties.

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