Wednesday, July 12, 2006

FCC Approves Adelphia/Time Warner/Comcast License Transfer

The Federal Communications Commission (FCC) approved the sale of substantially all of the cable systems and assets of Adelphia Communications to Time Warner Inc. and Comcast Corporation, the exchange of certain cable systems and assets between affiliates or subsidiaries of Time Warner and Comcast, and the redemption of Comcast's interests in Time Warner Cable and Time Warner Entertainment Company.

The FCC determined that subscribers would benefit from the resolution of the Adelphia bankruptcy proceeding in the form of new investment and upgrades to the network. Additionally, the transactions would accelerate deployment of VoIP and other advanced video services, such as local VOD programming, to subscribers.

With respect to the potential harms, the FCC found that the proposed transactions may increase the likelihood of harm in markets in which Time Warner or Comcast has, or may in the future have, an ownership interest in Regional Sports Networks ("RSNs"). The Commission imposed remedial conditions, the same as those imposed in the News Corp.-Hughes order to address its concerns.

See also