by Randolph May
As predictable as the sun rising tomorrow morning, Public Knowledge and like-minded organizations have filed a petition to deny the proposed acquisition of Cox Communications by Charter Communications. The pro-regulatory groups contend that, if approved, the combination "would reshape the American broadband landscape" and "would create unchecked gatekeeper power over Internet distribution."
Unchecked gatekeeper power? Reshape the American broadband landscape?
Public Knowledge and the co-signers must have pushed the wrong button in a time-travel machine, for they are surely looking backwards regarding the current state of the communications and media environment. In the process, they may have set a new low bar for extreme hyperbole.
We'll have more to say about the Public Knowledge petition and the FCC's consideration of the Charter – Cox transaction going forward. For the moment, I refer you to the comments submitted by the Free State Foundation and this Free State Foundation Perspectives authored by Daniel Lyons, a member of FSF's Board of Academic Advisors. They completely refute any notion that a combined Charter – Cox would possess any "gatekeeping" power over Internet distribution. And they demonstrate how dramatically the communications and media landscape already has been "reshaped" by vigorous competition among cable, fiber, satellite, fixed wireless, wireless, and hybrid facilities-based platforms – and continues to be reshaped, even as I write.
If approved by the Commission, the combination of Charter and Cox, "each now struggling with the challenge of competing in multiple maturing markets," as Daniel Lyons put it, will have an opportunity to survive and provide further competition in an already competitive intermodal marketplace.
Oh, while in the time-travel machine looking backwards, please recall the notorious AOL – Time Warner merger. Some of the very same signers of the petition to deny Charter – Cox petitioned to deny the AOL – Time Warner combination. The rhetoric – extreme hyperbole, you could say – regarding the supposed harms to consumers were that merger to be approved by the FCC was over-the-top.
The petition to deny the AOL – Time Warner merger described the "dangerous new dimension" being added to "the emerging structure of the cable TV/broadband Internet industry…." Among the "findings" cited in their petition: "The merger would allow two enormous firms to dominate the markets for broadband and narrowband Internet services, cable television, and other entertainment services, which could leave consumers with higher prices, fewer choices, and the stifling of free expression on the Internet." The petition claimed that the new "media giant" would "be able to quickly capture the new product market for interactive TV."
Well, the FCC approved the AOL – Time Warner merger…and you know how that combination worked out. We've seen this movie – I mean petition to deny! – before. Talk of "gatekeeper power" may have been slightly relevant in the early 2000s. Now it's downright frivolous.
It's time for Public Knowledge and the other like-minded groups to stop looking backwards through the looking glass and acknowledge the current marketplace reality.
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