FCC approves the merger of cable giants Cox and Charter

Source: Engadget

Background

The Federal Communications Commission (FCC) has approved the merger of two of the United States’ largest cable providers, Charter Communications and Cox Communications. Charter announced its intention to acquire Cox for $34.5 billion in May 2025, planning to integrate Cox’s managed IT, commercial fiber, and cloud businesses while folding the residential cable service into a subsidiary.

FCC Statement

“By approving this deal, the FCC ensures big wins for Americans,” FCC Chairman Brendan Carr said in a statement. “This deal means that jobs are coming back to America that had been shipped overseas. It means that modern, high‑speed networks will get built out in more communities across rural America. And it means that customers will get access to lower‑priced plans. On top of this, the deal enshrines protections against DEI discrimination.”

Charter’s Investment Plans

• The FCC notes that Charter intends to invest billions to upgrade its network after the merger, promising faster broadband and lower prices.
• The company’s Rural Construction Initiative aims to extend improvements to rural states that lack consistent internet service. This initiative was heavily supported during the Biden administration and has seen reduced emphasis since President Donald Trump appointed Carr to the FCC.
• Charter also commits to onshoring jobs currently handled offshore by Cox employees and to implementing “new safeguards to protect against DEI discrimination,” which the FCC describes as hiring, recruiting, and promoting employees based on skills, qualifications, and experience.

Historical Context

• Past mergers have sometimes produced outcomes contrary to the optimistic projections presented by regulators. For example, the T‑Mobile–Sprint merger in 2020 resulted in significant layoffs.
• After Charter’s merger with Time Warner Cable was approved by the FCC, the company raised Spectrum service prices by over $91 per year in 2018.

DEI Provisions

The FCC’s emphasis on diversity, equity, and inclusion (DEI) in this deal is notable because it extends beyond the commission’s traditional role of maintaining fair competition in telecommunications. Similar DEI‑related conditions have appeared in other FCC‑approved mergers under Chairman Carr, such as Skydance’s acquisition of Paramount in 2025, which was approved on the condition that no DEI programs be established.

Source

This article originally appeared on Engadget: