The cable companies have been working really hard to bring themselves up as leading broadband providing companies and online video distributors because the growth of internet has toppled their business.
With Charter Communications’ bid of $55 billion the deal was closed between Time Warner Cable and Charter Communications. Time Warner Cables has been bought by Charter Communications for $55.33 billion.
According to the critics, as a result of this wave of deals the prices will become high for the subscribers. From the data provider SNL Kagan, there are more people subscribing the internet than the people subscribing TVs. People now escape televisions for online videos.
Even though the number of TV subscribers is reducing day by day but still the costs for TV channels and sports are rising. Over 12 months, the number of subscribers declined to about 500,000, according to SNL Kagan the data provider.
Prior to this deal, Comcast Corporation released its bid for Time Warner Cable due to the opposition of federal regulators. This deal would have merged the two giant cable providers. However, the regulators were worried that this merger would badly affect the internet service and it might weaken the online video industry.
Time Warner Cable lacked customer satisfaction. However, this problem could be solved in the deal made by Charter Communications. According to the Charter, they will be introducing customer-service jobs. Jeff Wlodarczak from Pivotal Research Group said that Charter will have easy offers without hidden charges and this deal will be good for the consumers.
It is not necessary that the merger of giant cable companies will result in the rise of prices. Since the internet prices are also increasing and are likely to continue increasing, it is difficult to predict about the cable companies with so much competition with the online video industry.
With this deal still not confirmed a lot of things are yet to be decided. However, if the deal is broken by any of the two companies, they will have to play the other company 2 billion dollars as the deal breaking price.
