Dear friend,
I'd like to bring your attention to a giant merger that will have
a significant impact on consumers.
As you might already be aware, the New York State Public Service Commission
(PSC) is currently taking public comment and reviewing the proposed merger
of Comcast Corporation with Time Warner Cable, Inc. to determine if the
merger is in the public interest of New Yorkers.
If you are a consumer of Internet and cable, this merger will undoubtedly
affect you directly. I urge you to seriously consider the implications
that this merger may have on the quality and cost of services provided
to you as a consumer and the impact this merger may have on the overall
public interest.
The proposal seeks to merge two colossal corporations: Comcast, the biggest
cable company in the U.S. and largest media provider in the world; and
Time Warner Cable, the second largest U.S. cable company.
For Comcast, New York State's approval of the merger is essential:
Comcast currently has 23,000 customers compared to Time Warner's 2.5
million in the state. New York would account for 10 percent of the merged
company's customer base. Therefore, by having the authority to reject
the merger in New York State, the PSC has the power to persuade the companies
to possibly renegotiate its terms, if not stop it altogether.
Internet and cable competition in New York City is already essentially
non-existent. Connectivity and customer service are already delivered
at sub-par and unacceptable levels. Internet Service Providers are currently
able to charge consumers inflated prices as a result of poor competition.
I fear that the merger might only make such matters worse.
We must also consider the potential impact on our most underserved communities,
which are profoundly affected by the digital divide. Access to the Internet
is inarguably critical to function in today's informal and formal
spaces. The costs to digital segregation are rising as we increasingly
access the Internet for employment opportunities, education, entertainment,
etc. If accessing the Internet becomes more difficult for low-income communities,
academic and employment competition may be undermined, and could damage
the prospects of upward mobility for low-income New Yorkers and further
exacerbate income inequality.
This merger will likely lead to additional price increases, completely
shutting-out families and individuals already facing difficulty paying
for the service. Low-income communities would therefore be disproportionately
excluded from accessing what is now considered a basic form of infrastructure
and means of communication in our society.
We must analyze the possible short and long-term social and economic implications
of such a merger, and learn from past experience. Does less competition
usually lead to better and more economical service for consumers? More
often than not, the answer is no.
The PSC is continuing to take public comment on this issue. So far, 2,000
individuals have spoken up mostly against the merger.
I have taken action by issuing a public statement to the PSC and offered my concerns in an article currently on the Huffington Post.
Please join me in speaking up about the dangers of the merger by posting
your comment with the Public Service Commission HERE.
Sincerely,
Letitia "Tish" James
Public Advovate, NYC