Boston, MA 04/15/2014 (wallstreetpr) – Comcast Corporation (NASDAQ:CMCSA) had the most increase in basic cable rates in four years. The rates went up by 68 percent according to the findings of Free Press, a Washington D.C. group.
During the four years period, Time Warner Cable Inc (NYSE:TWC) that Comcast has offered $45 billion to acquired, reduced its basic TV services. Time Warner reduced its basic rates by 2.5 percent.
As concerns premium TV packages, Comcast upped its rates by 21 percent while Time Warner raised its rates by 17 percent over the four years duration between 2009 and 2013.
The findings of Free Press come at a time when Comcast Corporation (NASDAQ:CMCSA) and Time Warner have their merger request before the U.S. regulators. The two companies agreed to a tie-up in which Comcast will take the control of Time Warner through a $45 billion purchase price.
Winning regulatory approval
Although Comcast believes that adding Time Warner to its portfolio will boost its business performance and enable it return greater value to shareholders, regulators might shoot down the acquisition proposal. The decline of the proposal might arise if the regulators are convinced that the tie-up is not in the best interest of consumers.
When Comcast executives appeared before Federal Communications Commission (FCC), they sought to explain why the tie-up is in the best interest of the public. Among other things, the executives stated that Comcast and Time Warner are not in direct competition that might result in reduced choices or higher costs of services for the customers in the event of the tie-up.
Net neutrality
Moreover, the executives raised the issue of net neutrality that will effectively improve the service quality of Time Warner customers and other content providers. Comcast Corporation (NASDAQ:CMCSA) has maintained its net neutrality practice since taking over NBCUniversal despite the court challenging the rule.
The latest report shows that video streaming speed of Netflix Inc (NASDAQ:NFLX) increased significantly in the month of March after it signed a direct but confidential deal with Comcast Corporation (NASDAQ:CMCSA). In convincing regulators of the benefit of its tie-up with TWC, Comcast might use the latest development to strengthen its net neutrality argument.
