Comcast: Merger to bring “$8 billion in price reductions” to businesses

I think DoomHamster sums it up nicely:

So is merging with TWC the only way they can enter that market? And if TWC is already in that market, how would Comcast merging with them increase the competition?

Seems to me that the better option for increasing competition would be for Comcast to enter the market along side TWC and all the other that are there.

What am I missing?

From Ars Technica:

When Comcast announced its proposed acquisition of Time Warner Cable, Executive VP David Cohen bluntly said that Comcast is “not promising that customer bills are going to go down or even increase less rapidly.”

But while residential customers shouldn’t expect any financial relief from the nation’s largest cable company, Comcast now says the merger will create new competition in the business market, lowering prices, especially for large, multi-city businesses. In areas including San Francisco, Seattle, Chicago, Houston, Miami, Boston, and Philadelphia, “we expect to generate almost $8 billion in price reductions due to our competitive entry in the enterprise business segment through the TWC transaction,” Comcast Business President Bill Stemper wrote in a blog post yesterday.

Comcast provided some details on how it calculated the expected price reductions in a filing last month with the Federal Communications Commission, though the numbers in that document are redacted. Comcast calculated cost savings over a 10-year period for enterprise customers, meaning multi-location businesses with at least 500 employees, the filing said. There will be “various cost savings and other benefits” for small businesses too, the filing said.

Link (Ars Technica)

 

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