Comcast Corp. on Tuesday presented its case to government regulators arguing that its $45 billion takeover of Time Warner Cable Inc. will benefit consumers without limiting competition, according to the Wall Street Journal.
The company filed hundreds of pages of documents with the Federal Communications Commission after filing a notice Monday with the Justice Department, the WSJ reported.
On Wednesday, Comcast Corp. executive vice president David Cohen will testify before the U.S. Senate Judiciary Committee in a hearing to review the impact of the merger on consumers, according to the WSJ.
Comcast says the acquisition will allow it to boost Internet speeds for Time Warner Cable, the WSJ reported. The filing also says the company will provide better video-on-demand service and broaden its commitment to "Net neutrality."
Net Neutrality is the idea that Internet providers should not discriminate against Web traffic depending on its source, according to the WSJ.
Comcast has agreed to not discriminate against any traffic in its network through 2018 as a condition of its $30 billion purchase of NBCUniversal, which was completed last year, the WSJ reported. The company vowed to maintain the commitment despite a federal appeals court decision that struck down the FCC-imposed rules in January.
Comcast says pay-TV streaming services from Netflix Inc. and others have created competition in video, while there is at least one broadband Internet competitor in more than 98 percent of its markets, according to the WSJ.
"Comcast and Time Warner Cable do not compete against each other in any area. So this transaction will not result in any reduction in consumer choice in any market," said Cohen on a conference call with journalists Tuesday, the WSJ reported.
Cohen also responded to calls by Netflix CEO Reed Hastings to extend "Net neutrality" protections to the so-called "interconnection" area between major Internet backbone providers such as Comcast, according to the WSJ.
Cohen said the market for interconnection is "not at all impacted by this transaction" although the deal will give it about a third of the market for all Internet subscribers nationwide, the WSJ reported.
In February, the two companies reached a deal in which Netflix pays Comcast to ensure its video streams faster and more consistently to Comcast subscribers, the WSJ reported.
