If you follow news of the media and telecommunications industries, you know that the FCC and Department of Justice recently approved the merger of Comcast and NBCU. This deal marries together the nation’s largest cable provider and one of the major broadcasters. During this past year, several hearings were held by Congress as they sought to understand the potential impacts of the proposed merger upon consumers and competition. WOW! CEO, Colleen Abdoulah, testified before Congress representing the interests of smaller cable operators throughout the country. The Q&A below gives you some of her perspective on the process and why it was important to advocate on behalf of WOW!’s customers and employees.
Q: You spent a lot of time in D.C. in 2010, advocating that the Comcast-NBCU deal needed to have conditions attached to its approval. What kind of conditions were you looking for and were you successful?
I testified in Washington three times before Congress, once before the FCC at a field hearing in Chicago, and attended numerous meetings on the Hill in DC and at the FCC for one reason – fairness. I knew that the Comcast-NBCU merger could create many harms and possibly hurt our company’s competitiveness, and that’s why I testified to ask the FCC and Washington to ensure that our company could continue to compete effectively in our markets. I didn’t ask for special treatment, but just limited conditions that would prevent Comcast-NBCU from taking anti-competitive action against us. Working with our Washington trade association, the American Cable Association (ACA), we sought conditions that would strengthen our company’s ability in the arbitration process to hold Comcast-NBCU accountable for its actions and that would help to keep programming prices down for regional sports, retransmission consent and national cable programming. And after 13 months of effort, the FCC provided conditions that we believe will do just that.
Q: Were there any significant conditions we wanted but were unable to get?
There were many things that we and the ACA would have liked to obtain, but in reviewing a merger like Comcast-NBCU, the FCC does a very thorough job of ensuring that conditions address only those harms that specifically are caused by the merger. No broad conditions were implemented that address industry-wide problems dealing with programming or retransmission consent. For the most part, however, the FCC provided conditions that were on target with the merger-specific harms we and the ACA proved. The FCC extended relief for the first time to cover national cable programming, as well as improved arbitration relief for regional sports and retransmission consent matters. The FCC also increased the size limit for the definition of a smaller cable operator that fully covers WOW! and gives us access to special FCC relief if and when we have a irreconcilable issue.
Q: How will this merger impact WOW!? Will Comcast put WOW! out of business?
We are not at risk of Comcast putting WOW! out of business because of this merger. Yes, it gives them unprecedented size and market power for sure. But we will continue to apply our own, clear and focused strategies, conducting business as we have prior to the merger. Comcast has always invested in the future and now their resources to innovate just expanded. This is something we have always faced being the smaller operator. Yet with the resources we have and the consumer focus we are grounded in, WOW! has smart innovative ideas and plans for the near and long term that will allow us to continue to be competitive. Therefore, the direct and immediate impact this merger has will be fairly transparent until we have to negotiate for services they own/control. Then we shall see if they choose to negotiate in good faith or if we will need to resort to the improved arbitration relief granted.
Q: Now that you have a view of the inside, what do you think about our system of government? Was there anything that really took you by surprise?
Our system has a lot of flaws and can be horribly frustrating and discouraging to navigate through. That said, it is democracy at its best. We do have a voice. We have freedom of speech. We can work hard to try and make things better if we don’t like what we see and experience and that in itself is a gift. Our elected officials can get isolated from the ‘real world’ and it is important that constituents take an active role in their local, state and national issues. The politicians listen to their constituents because they want to be re-elected, in most cases. The surprises – well, it is the power of money and big industry. I always knew that money mattered and corporations have a huge impact on Washington. I guess I just didn’t realize how much. Along with money though a common denominator still exists which allows for small guys like us and the ACA to have a voice: relationships. After all, Washington is made up of people. People who know one another, respect and trust each other and build bonds with one another. The ACA and the agencies that support the ACA have built great relationships on the Hill and have earned the trust and respect of many influential people. It reinforces that money isn’t everything. Relationships and working with integrity matter as well. So I was pleasantly surprised that by being willing to testify and invest in the time to meet with various stakeholders, we were able to further develop relationships and in the end, be heard and taken seriously.





