Charter Gets FCC Permission To Buy Cox, Become Largest ISP In the US
Source: Slashdot
Deal Overview
Charter Communications, the operator of the Spectrum cable brand, has received permission from the Federal Communications Commission (FCC) to acquire Cox. The acquisition would make Charter the largest home Internet service provider in the United States, surpassing Comcast.
- Charter’s current customers: 29.7 million residential and business Internet customers
- Comcast’s customers: 31.26 million
- Cox’s customers: 5.9 million (to be added to Charter)
The FCC approved the deal on Friday. The transaction still requires approval from the U.S. Department of Justice and sign‑offs from several states, including California and New York.
Regulatory Approval
The FCC’s approval came despite objections from opponents of the $34.5 billion acquisition. Critics argued that eliminating Cox as an independent entity would make it easier for Charter and Comcast to raise prices. The FCC dismissed these concerns, noting that Charter and Cox do not compete directly against each other in the vast majority of their territories.
Opposition and FCC Rationale
- Opponents’ claim: The merger could reduce competition and lead to higher prices.
- FCC’s response: Competition concerns are minimal because the two companies’ service areas largely do not overlap.
DEI and FCC Chairman’s Stance
FCC Chairman Brendan Carr has emphasized the removal of diversity, equity, and inclusion (DEI) programs and policies as a condition for merger approvals. In a press release (PDF), the Carr‑led FCC stated that:
“Charter has committed to new safeguards to protect against DEI discrimination,” and that Charter’s network‑expansion plans will bring “faster broadband and lower prices” to rural areas.
The approval was issued one day after Charter sent a letter to Chairman Carr outlining its actions to end DEI initiatives.
Geographic Reach
- Charter: Broadband and cable service in 41 states
- Cox: Service in 18 states
Source: Ars Technica (quoted by an anonymous reader).