Charter/TWC/BHN Review Seeing Supporters of Many Different Stripes

Charter has been supportive of carrying ethnic programming, and Jewish Life Television's support of Charter/TWC/BHN was in recognition of that, CEO Phil Blazer said about the company's filing in docket 15-149. JLTV in 2010 also weighed in to back Comcast's purchase of NBCUniversal. "It's more of a general support than selfish self-centered support" of trying to curry favor, Blazer said. "If Charter moves forward on this and they're in diverse neighborhoods, it'll be good for everybody."

Michigan's Mecosta County Area Chamber of Commerce has worked with Charter, such as on the state's Connect Michigan broadband access effort, and it also has Charter representation on its board, said the chamber's Executive Director Jennifer Heinzman. So when Charter said the chamber's support might be helpful in obtaining FCC approval, and coupled with its pledge to provide a low-cost broadband offering as a condition of its merger, "we saw it as a win-win," Heinzman said.

In many cases, third-party filings are from groups that have enjoyed support from one of the companies. TWC "has been a major sponsor" of the two previous AIDS Walk Kansas City events, AIDS Service Foundation in Kansas City, Missouri, said in its filing posted Thursday. TWC similarly worked with Milwaukee Riverkeeper on different programs, the group said in its filing posted Thursday. "We're looking forward to working with New Charter on the company's environmental projects."

TWC "has been a good corporate partner with us," such as through its sponsorship of the Museum of Science and Innovation's annual science festival, said William Sudduth, president of the Schenectady, New York, museum. The museum volunteered unbidden to write its letter of support, Sudduth said, adding that if TWC "had asked, we'd have said yes. Nonprofits tend to support the companies that support them. You want them to be prosperous."

When asked about requesting that parties write the FCC on behalf of the deal, Charter in a statement to us said that it "has been busy reaching out to a diverse array of community organizations to introduce ourselves and discuss the many public benefits of the transaction." Charter also said it welcomes "the support of those who have taken the time to submit comments to the FCC and hope that others will add their voices of support going forward.” The FCC declined to comment and TWC didn't comment.

FCC General Counsel Jon Sallet said deal reviews start with facts and methodologies surrounding antitrust concerns, according to prepared remarks to have been given Friday evening at the Telecommunications Policy Research Conference in Arlington, Virginia. The agency then uses the requirement that applicants show the transaction furthers the public interest as a route to looking "beyond the traditional strictures of the antitrust laws," Sallet said. The FCC then looks at public interest commitments offered by applicants and at "putting in place strong mechanisms to ensure compliance with conditions," he said. The FCC also uses its economics and network engineering expertise in conjunction with the antitrust expertise of other agencies, Sallet said.

"Small voices can matter in big rulings," said Adonis Hoffman, adjunct faculty member at Georgetown University and former chief of staff to Commissioner Mignon Clyburn. Hoffman, who has been generally supportive of business interests since leaving the FCC and is a leadership consultant, pointed to the FCC net neutrality order and the agency's review of the since-abandoned Comcast/TWC. "In net neutrality over four million people took the time to press the Commission for [Communications Act] Title II regulation, although 99.9 percent of them did not even know what that meant," Hoffman said. "In Comcast, the FCC was inundated with a litany of comments against the merger from small, independent, somewhat minor entities, which combined with opposition from bigger players[,] had a significant impact on the FCC's direction, and thus, Comcast's withdrawal."

"It is very much in the better interests of merging parties to show support from small groups, especially independent programmers, content creators, suppliers and contractors," Hoffman said. "Major opponents will be able to skillfully voice their views through Washington lobbyists and lawyers or industry trade associations. If the FCC is paying attention to the 'public interest' it will give credence to those small voices, who often have much to lose or gain and are speaking out in simple ways." Small entities can take a big risk "if they come down on the wrong side of the powers that be," Hoffman said, leading to some companies in recent transaction proceedings wanting to remain anonymous or having sought some sort of protection.