The Time Warner Deal: Big Cable Is Coming for Big Wireless
Time Warner Cable is once again at the center of a cable megamerger, in the form of a $55 billion deal with Charter. The last time a cable giant tried to buy Time Warner Cable, the deal collapsed, largely over concerns about how bad it would be for customers. Charter is already hard at work arguing why it’s different this time around. And while Charter will be talking largely about how the cable industry will stay competitive, the deal could also result in some new competition in another arena dominated by a small number of companies that wield immense power: wireless.
Cable companies and wireless companies haven’t traditionally infringed on each others’ territory. The cable industry has focused on pay television; the wireless industry was all about phone calls. Today the main business of both industries is selling access to the Internet. Cable companies are developing their own wireless services in which people spend most of their time connected to Wi-Fi networks and fall back on cellular service to fill the gaps.