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7 Quotes That Tell You Everything About the Comcast-Time Warner Cable Merger Hearing

Two men who stand to gain millions from the proposed Comcast-Time Warner Cable merger were hauled before the Senate Judiciary Committee on Wednesday for a hearing that examined the impact it would have on consumers like you.

Comcast Executive Vice President David Cohen and Time Warner Cable CFO Arthur T. Minson made their case for a merger that would see the country's two biggest cable companies form one megacorporation.

See also: The National Domination of Comcast and Time Warner in 1 Map

The committee — which holds broad jurisdiction over antitrust law but cannot decide whether or not the merger will actually happen — gave consumers a fantastic opportunity to hear from the companies and Senators, who want to know what's in it for the rest of us.

TL;DR These seven quotes pretty much sum up the whole thing.

1. "I believe this deal will result in fewer choices, higher prices and even worse service for my constituents." — Sen. Al Franken (D-Minn.)


Image: Carolyn Kaster, File/Associated Press

Sen. Al Franken has been opposed to the Comcast-Time Warner Cable deal since February, so it came as no surprise when he said on Wednesday that he was against it. Sen. Franken, who claims to have 100,000 signatures from constituents equally concerned, said he believes the merger will result in less competition and higher prices. "Comcast says there is no overlapping footprint, but it wants to control the national market,” Franken said. “As it gets bigger it will have more power to squeeze consumers.”

2. "They just want to know why their cable bills keep going up." — Sen. Pat Leahy (D-Vt.)


Image: Pablo Martinez Monsivais/Associated Press

Sen. Patrick Leahy, in his opening testimony, said consumers didn't want to hear complex legal jargon or obscure regulatory terms in Wednesday's hearing. "They want to know why their cable bills are going up," he said. "They want to know why they do not have more choice of providers. Consumers are trying to find out whether and how this merger is good for them. I want to find out the same things," he added.

Americans have seen their cable bills skyrocket over the past 13 years, from a measly $48 per month in 2001 to $128 in 2011. Today, Comcast, on average, collects $156 dollars per month, per customer. "Outpacing inflation, cable is now so expensive that it creates poverty issues: in poorer households it competes with basics like food, rent, or health insurance. If you wanted to help the poor, you could do worse than cutting cable bills," Columbia Law School professor Tim Wu wrote in The New Yorker.

3. "Where’s the beef?" — Sen. Richard Blumenthal (D-Conn.)


Image: Susan Walsh/Associated Press

Sen. Blumenthal said Comcast had not fully demonstrated the benefits consumers have to gain in its proposed merger with TWC, adding that he believes the deal faces “a high degree of skepticism."

After filing its statement of “public interest” with the Federal Communications Commission earlier this week, Comcast’s David Cohen attempted to argue that consumers would benefit from the deal on a conference call on Tuesday.

“This transaction means a host of exciting benefits for consumers: faster Internet speeds, a fully upgraded network, the extension of the FCC’s open internet rules to TWC customers and nationally acclaimed and comprehensive low-income broadband adoption, the best in class video and technology user interface, the best alternative to traditional voice services, and a commitment to diversity and making broadband accessible to people with disabilities,” he said, ticking off a list of improvements the company hopes customers will soon see.

Sen. Blumenthal, however, wasn't sold. Speaking to Cohen in Wednesday's hearing, he asked, “Where’s the beef? Where’s the 'there' there for consumers? I think the case has yet to be made the consumers will benefit in a really tangible way.”

4. "Some of my friends here have never met a merger they didn’t like." — Sen. Orrin Hatch (R-Utah)


Image: Charles Dharapak/Associated Press

Sen. Orrin Hatch took the side of free markets and warned against government regulation. One of the more conservative members of the committee, Sen. Hatch, 80, said, “Absent clear evidence of market failure, consumers benefit when the government allows free markets to allocate resources in the most efficient [way possible]. Government regulators must be especially careful not to intervene unwisely in such a technology dynamic market."

Directing a proverbial side eye at his some of the more liberal lawmakers on the committee, Sen. Hatch said, "Some of my friends here have never met a merger they didn’t like."

5. "This issue literally touches people’s lives every day, and it touches their wallets every month." — Sen. Amy Klobuchar (D–Minn.)


Image: J. Scott Applewhite/Associated Press

Sen. Amy Klobuchar wondered how a combined Comcast-TWC might impact a whole series of smaller businesses and services that rely on ISPs, from programming to broadband to services like Netflix.

See also: Will Comcast and Time Warner Cable Sink Net Neutrality?

“What will happen to the next Netflix that today is still just a dream in a garage?” Sen. Klobuchar asked. “We want to make sure that the next new and competitive online service will be able to get their content to the merged company’s growing consumer base.”

The competition questions that arise from such a merger are “one of the most important issues this committee faces,” she said.

6. "I think you will find they are in line." — Time Warner CFO Arthur Minson


Image: Susan Walsh/Associated Press

Sen. Patrick Leahy, the committee's chairman, said TWC CEO Rob Marcus and CFO Arthur Minson stood to make $80 million and $27 million, respectively, if the merger went through.

“Do these golden parachutes help your shareholders?” Sen. Leahy asked of the Time Warner CFO. Minson wouldn't say, so Leahy tried again. “As it relates to the overall compensation packages from transactions of this size and this complex I think you will find they are in line,” Minson said, to which Sen. Leahy replied he “was not sure consumers would agree with you.”

7. "Sometimes, we need a kick in the butt." — Comcast Executive Vice President David L. Cohen


Image: Susan Walsh/Associated Press

Comcast isn't exactly known for its customer service. It was recently voted the worst in America by The Consumerist — beating out SeaWorld, Monsanto and Verizon. During Wednesday's hearing, Cohen said the company would try to do a better job.

"It bothers us we have so much trouble delivering high quality of service to customers on a regular basis," Cohen said. "Sometimes, we need a kick in the butt."

“You’re welcome,” Sen. Franken responded.

Have something to add to this story? Share it in the comments.

সোর্স: http://mashable.com

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