Comcast Makes (Small) Business Case for Merger

Calls Combined MSOs 'Disruptive Entrepreneur' in Biz Services
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Bill Stemper, president of Comcast's business services unit, took to the Web to make a business case for the Time Warner Cable merger.

Stemper is definitely in agreement with Vice President Joe Biden, who has pitched broadband as a way to help small businesses be more competitive..

"One of the most important benefits of our transactions with Time Warner Cable and Charter will be providing our services to more businesses and the introduction of increased competition among communications companies, resulting in innovation and cutting-edge products and services," Stemper said.

Broadband competition has been a big driver of the Federal Communications Commission's policies under chairman Tom Wheeler, so Comcast is clearly aiming at the "Wheelhouse" on the issue.

With telcos having gotten the big jump on businesses services, Stemper was able to characterize Comcast as a disruptive competitor in the small-business market.

"Since launching Comcast Business in 2006, we have been a disruptor in the business services market by bringing an entrepreneurial spirit and innovative products to business customers of all sizes," Stemper wrote.. "But, in 2013, Comcast and TWC had a combined share of only about 10-15 percent of the market for small- and medium-sized businesses.  We’re committed to helping businesses of all sizes and types succeed and grow with our TWC transaction."

The FCC has currently stopped the clock on its merger review of the deal while it awaits a court decision on third-party access to contracts. While early Wall Street handicappers gave good odds on Washington approval, those odds have lengthened, particularly given the focus on broadband subs.

Stemper argues combining the Comcast and TWC networks will give small-business broadband subscribers more choice and faster broadband, as well as enhanced phone service.

"Many companies have gone on the record to voice their support for this transaction, and once it closes, Comcast will offer more advanced and innovative products to business customers throughout the combined footprint with greater scale – and that means operational efficiencies to better serve our business customers both large and small," Stemper wrote.

To read the entirety of Stemper's case, click here.