One of the big mysteries in corporate America is whether telecom regulators will allow theComcast/Time Warner Cable merger, announced in February, to close. President Obama’s comments on net neutrality on Monday provide a clue: the government is going to make the business of delivering internet less attractive. This could undercut some of the objections to the deal.
The White House statement said Mr Obama favoured reclassifying internet service providers such as Comcast and TWC as “common carriers”. Such a move by the Federal Communications Commission (which is independent of the president) would regulate ISPs like utilities. The president favours prohibiting “paid prioritisation” in which content providers buy access to faster distribution.
Netflix struck such deals with several ISPs (including Comcast) this year but has since complained about them.