California regulators approve $34.5-billion Charter-Cox merger
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regulators → approve → merger
California regulators have approved the sale of Cox Communications to cable giant Charter Communications — the final hurdle in a marathon review to clear the $34.5-billion cable consolidation.
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regulators → approve → consolidation
With Thursday’s sign-off by the California Public Utilities Commission, the mammoth merger is expected to close next week.
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merger → expect → Commission
The deal will make Charter’s Spectrum the dominant broadband internet and cable television service in Southern California, with millions of customers scattered throughout Santa Barbara, Bakersfield, Los Angeles, Palos Verdes Estates, Newport Beach, Irvine, Riverside and San Diego.
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Spectrum → make → Barbara
Charter’s acquisition of Cox, unveiled 15 months ago, will solidify Charter’s status as the nation’s largest cable company, eclipsing Philadelphia-based Comcast Corp., which serves San Francisco and other Northern California communities.
“This transformative deal will benefit millions of consumers who will soon have access to greater value and opportunities to save, including our fully converged mobile-broadband bundle savings guarantee, combined with our industry-leading Customer Commitment and the 100% U.S.-based sales and service employees Spectrum is known for,” Charter said in a statement.
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Charter → unveil → statement
Spectrum owner Charter Communications is nearing the finish line in its long-awaited $34.5-billion purchase of Cox Enterprises to form the nation’s largest internet and cable television company.
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Communications → near → company
But consumer groups are seeking more protections for diversity and other measures.
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groups → seek → diversity
After weeks of behind-the-scenes wrangling, the CPUC voted unanimously to approve two settlement agreements with Charter that allow the merger to move forward.
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merger → vote → Charter
The agency attached conditions that it hopes will protect consumers and expand broadband access.
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it → attach → access
“This decision secures significant commitments that will benefit Californians through expanded affordable broadband options, major infrastructure investments, improved customer protections, and meaningful support for digital inclusion,” Commissioner Matthew Baker, who helped negotiate the agreements, said in a statement.
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who → secure → statement
Federal regulators approved the deal months ago, as had other state regulators.
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regulators → approve → regulators
“This proceeding was a heavy lift for everyone,” Commissioner Darcie L. Houck acknowledged during Thursday’s hearing, which was held in San Francisco.
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which → acknowledge → Francisco
Through the settlements, Houck said she hoped Charter would address a disparity in which low-income residents are often stuck with higher phone and internet bills than residents in more affluent areas.
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residents → say → areas
Higher-income neighborhoods often benefit from increased competition as multiple providers jockey for business.
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providers → benefit → business
“There are many areas of the state that do have low-income communities that are paying higher costs for telecommunication services,” Houck said.
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Houck → be → services
“I’m hopeful that the provisions in this settlement agreement will help ensure more equity in pricing.
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provisions → ’m → pricing
The deal brings together two of the biggest cable companies in the country at a time when pay-TV firms are losing subscribers.
Atlanta-based Cox has long been viewed as a lucrative prize.
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Cox → bring → prize
In addition to serving coastal communities in Southern California, it also has customers in growing population hubs such as Las Vegas, Phoenix and Tucson.
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it → serve → Vegas
To win CPUC approval, the Stamford, Conn.-based cable giant agreed to offer more affordable packages for low-income residents, including several tiers of the California LifeLine service, for up to five years.
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giant → win → years
Advocates had pushed for a longer commitment.
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Advocates → push → commitment
Charter promised to invest $30 million in education and awareness initiatives in California, including community outreach and digital literacy training.
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Charter → promise → outreach
In addition, Charter agreed to spend at least $275 million on upgrades to its equipment in its existing Spectrum service area — including completing a 1-gigabit service buildout — within three years.
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Charter → agree → years
The company also must provide free broadband and Wi-Fi service for dozens of eligible community centers, including schools and libraries.
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company → provide → schools
Spectrum will be required to provide automatic bill credits for customers for qualifying service outages that last at least two hours.
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that → require → outages
And the company must honor eligible “price for life” service agreements held by some residential subscribers.
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company → honor → subscribers
Charter Chief Executive Chris Winfrey has told investors that his firm was aiming to close the merger this month.
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firm → tell → merger
Several commissioners noted the looming deadline as they opted for the settlement that Baker helped negotiate.
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Baker → note → that
Regulators said the two companies generate more than $10 billion in revenue from their California customers.
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companies → say → customers
In addition to serving more than 5 million homes, they also provide telephone service to 1.5 million subscribers in the state.
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they → serve → state
After the deal closes, Cox customers will be switched to Spectrum service, most likely by mid-September.
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customers → close → September
They should also get SportsNet LA — the Dodgers’ television channel — as part oftheir lineups.
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They → get → lineups
For more than a decade, Cox has refused to carry the channel, owned by the Dodgers organization, due to its high license fee — leading to one of the television industry’s longest blackouts.
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Cox → refuse → blackouts
