CEO DATELINE - Cable, wireless associations oppose Sinclair merger
CEO DATELINE - Cable, wireless associations oppose Sinclair merger
- August 8, 2017 |
- Walt Williams
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Several associations are urging federal regulators to nix a proposed merge between Sinclair Broadcast Group and Tribune Media Co., saying the combined company would harm competition.
Federal law prohibits a single company from owning more of 39 percent of stations reaching TV households. The merger would result in Sinclair owning stations reaching nearly 72 percent of households, but the Federal Communications Commission has suggested it may allow the deal to move forward under recent rule changes that eased restrictions on station ownership, USA Today reported.
Political liberals have blasted the proposal because Sinclair uses its stations to air conservative commentaries and skew news coverage to the right. However, many associations instead focused on the enormous power the merged business would have when dealing with other telecommunications companies.
"This proposed transaction—with its unprecedented colossal scale and increased local presence— would result in severe harm to competition and to customers through demands for increased retransmission consent fees," American Cable Association CEO Matthew Polka said, referring to the fees cable providers must pay local broadcasters for airing their programming.
"Imposing behavioral conditions on the proposed deal is insufficient to address the rule violations and harms. It must be denied," he said. http://bit.ly/2vLYvhb
Cable companies are not the only industry wary of the merger. Wireless providers worry the deal would give Sinclair control over an unacceptably large chunk of wireless broadcast spectrum, a finite resource.
"There is no question the negative impact that such a large transaction would have on the public interest, and to avoid harmful outcomes, the FCC must deny it," Competitive Carriers Association CEO Steven Berry said. "Consumers, especially those in rural areas that are still unserved and underserved, need access to mobile broadband services as soon as possible, and the FCC should continue its important work to ensure a timely repack process to achieve this important goal." http://bit.ly/2foTqnW
The Computer and Communications Industry Association and NTCA—The Rural Broadband Association also have filed documents opposing the merger, USA Today reported. https://usat.ly/2vfYxN5
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