Comcast And AT&T: Gobble, Gobble, Gobble

Comcast wishes to become a vertically integrated behemoth. They will dictate programming and technology because their fingers are in every pie.

Even today they double dip, charging Netflix for services I’m already paying for. That’s what monopolies do! How can you say no to the company that stands between you and your customers?

New Haven Comcast officeComcast is in the process of swallowing Time-Warner. AT&T has just announced they’re purchasing DirecTV. Maybe I just haven’t looked closely enough, but where is the benefit to citizens?

The biggest trend in American business over the past few decades has been consolidation. Much of it is subject to regulatory approval. It should be subject to regulatory scrutiny. That part seems sorely lacking.

Comcast wishes to become a vertically integrated behemoth. They will dictate programming and technology because their fingers are in every pie.

Even today they double dip, charging Netflix for services I’m already paying for. That’s what monopolies do! How can you say no to the company that stands between you and your customers?

Comcast as every incentive to do more of the same, protecting their legacy businesses through the terms they offer consumers.

Will programming and distribution deals be structured, as many are now, to protect Comcast’s cable TV business? Why do I even ask?

There was a time in America when bigger was better. Charles Erwin Wilson, nominee for Secretary of Defense in the early 1950’s famously tried to hold onto his GM stock while in office&#185.

Because for years I thought what was good for our country was good for General Motors, and vice versa.

att_logoAnd maybe, sixty years ago, it was. Employment scaled up as company’s did.

Is there anyone who actually believes the Comcast or AT&T acquisitions will have a positive outcome for America? More choice? More employment? More investment? Better technology?

“This compelling and complementary combination will bring significant benefits to all consumers, shareholders and DIRECTV employees,” said Mike White, president and CEO of DIRECTV. “U.S. consumers will have access to a more competitive bundle; shareholders will benefit from the enhanced value of the combined company; and employees will have the advantage of being part of a stronger, more competitive company, well positioned to meet the evolving video and broadband needs of the 21st century marketplace.” – AT&T press release

The important part is there in the last sentence:

a stronger, more competitive company, well positioned

We’re already dealing with companies treading very close to the anti-trust line. Take the bundling of cable TV services, where I have to buy loads of channels I don’t want to get the ones I do.

Typically, the “tied” product may be a less desirable one that the buyer might not purchase unless required to do so, or may prefer to get from a different seller. If the seller offering the tied products has sufficient market power in the “tying” product, these arrangements can violate the antitrust laws. – Federal Trade Commission

The system is being gamed and these mergers and acquisitions will only make things worse. It’s time to put a stop to it.

&#185 – He sold his stock before his appointment, but after his confirmation hearing.

Out Of Bandwidth

In England, the BBC has just started streaming TV shows through a proprietary program call iPlayer. People must be watching because the ISPs (the companies that deliver the Internet to you) are worried.

From DownloadSquad: iPlayer is causing all sorts of other trouble for ISPs. The player, built for viewing and downloading popular television shows onto computers through the special application is taking a toll on the ISPs bandwidth. So much so that they are looking for compensation from the BBC, threatening to initiate traffic shaping that would slow down service and render the player unusable if they don’t pay up.

I had been thinking about this on my own before the British scare. Internet bandwidth isn’t infinite. There are choke points all over the place that can get swamped with traffic. High quality video is about the most bandwidth intensive you can run!

I wasn’t too concerned about the BBC originally. My worry is closer to home. Imagine the traffic for NBC and the Olympics.