California regulators approve $34.5-billion Charter-Cox merger
asserted
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.
asserted
regulators → approve → consolidation
With Thursday’s sign-off by the California Public Utilities Commission, the mammoth merger is expected to close next week.
asserted
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.
asserted
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.
asserted
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.
asserted
Communications → near → company
But consumer groups are seeking more protections for diversity and other measures.
asserted
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.
asserted
merger → vote → Charter
The agency attached conditions that it hopes will protect consumers and expand broadband access.
asserted
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.
asserted
who → secure → statement
Federal regulators approved the deal months ago, as had other state regulators.
asserted
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.
asserted
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.
asserted
residents → say → areas
Higher-income neighborhoods often benefit from increased competition as multiple providers jockey for business.
asserted
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.
asserted
Houck → be → services
“I’m hopeful that the provisions in this settlement agreement will help ensure more equity in pricing.
asserted
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.
asserted
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.
asserted
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.
asserted
giant → win → years
Advocates had pushed for a longer commitment.
asserted
Advocates → push → commitment
Charter promised to invest $30 million in education and awareness initiatives in California, including community outreach and digital literacy training.
asserted
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.
asserted
Charter → agree → years
The company also must provide free broadband and Wi-Fi service for dozens of eligible community centers, including schools and libraries.
asserted
company → provide → schools
Spectrum will be required to provide automatic bill credits for customers for qualifying service outages that last at least two hours.
asserted
that → require → outages
And the company must honor eligible “price for life” service agreements held by some residential subscribers.
asserted
company → honor → subscribers
Charter Chief Executive Chris Winfrey has told investors that his firm was aiming to close the merger this month.
asserted
firm → tell → merger
Several commissioners noted the looming deadline as they opted for the settlement that Baker helped negotiate.
asserted
Baker → note → that
Regulators said the two companies generate more than $10 billion in revenue from their California customers.
asserted
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.
asserted
they → serve → state
After the deal closes, Cox customers will be switched to Spectrum service, most likely by mid-September.
asserted
customers → close → September
They should also get SportsNet LA — the Dodgers’ television channel — as part oftheir lineups.
asserted
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.
asserted
Cox → refuse → blackouts
The Aporia
