One would think that telecom mergers would be based on the service being provided by the two companies. It really isn’t and it never has been. Case in point, The Hill notes that last month, Charter Communications hired four Washington D.C. lobbying firms in a single day. The hope is that Charter can convince the government to approve their merger with Time Warner Cable.
Charter also wants people to understand that they are only hiring these lobbyist firms because they “don’t have the resources” to do what is necessary to get the merger approved. Apparently, even though they have yearly revenue is approaching $10 billion, they struggle with “resources” like many other normal businesses.
Charter has made a big push in the last few weeks trying to convince the public and government that the merger with TWC is good for consumers. They have even gotten Netflix to publicly agree with the merger. They did this by promising both the FCC and Netflix that they would in writing agree to the principles of net neutrality. That includes no data caps or throttling of connections.
This sounds great until you realize that these promises only last until 2018. Considering Charter has been at the forefront of imposing ridiculous data caps in the past, that should scare consumers going forward.