The Federal Communications Commission (FCC) on Friday approved Charter Communications’ proposed $34.5 billion acquisition of peer broadband and pay television provider Cox Communications.
The approval came after Charter made assurances to the FCC that it would not employ diversity, equity and inclusiveness (DEI) elements in its hiring and promotional practices, while promising other commitments to build out fiber-based broadband networks in small cities and rural parts of the country.
Charter and Cox mostly operate in different parts of the country. The combined company is expected to take Charter’s name while maintaining phone, TV and Internet sales and services under the Spectrum brand.
The deal would create the largest cable TV provider in the country, surpassing Comcast with nearly 40 million residential and business subscribers. FCC Chairman Brendan Carr said he was optimistic that the tie-up between Charter and Cox would lead to “lower-priced plans,” without providing specifics.
Cable TV and broadband operators are regulated by the FCC in part because they use public rights-of-ways for their utility poles and underground lines.
The acquisition is still subject to other regulatory approvals, including a green-light from the California Public Utilities Commission (CPUC), which regulates broadband and cable TV companies that operate in that state.
Earlier this year, the CPUC approved a merger between Verizon Communications and Frontier after receiving numerous concessions from Verizon, including rural broadband build-out and wireless network upgrade promises.
Cox Communications shares common ownership with local television broadcaster Cox Media Group, though the two are operated as separate and unrelated businesses.
