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Consolidation in the Broadband World

The list of companies from which you can get broadband and cable is getting shorter.

On Monday, the Federal Communications Commission and Department of Justice moved to approve two big acquisitions from Charter Communications to buy Time Warner Cable and Bright House Networks. The development clears the way for the creation of a cable and broadband juggernaut at a time when the number of options that consumers have for those services is narrowing, write Cecilia Kang and Emily Steel.

Consider the deals that have taken place in the last few years that have winnowed the number of broadband and cable providers — AT&T and DirecTV, Altice and Cablevision, among others. For consumers, the declining number of players could potentially lead to reduced competition and higher prices.

To guard against such outcomes, the regulators have put into place a number of restrictions with the Charter deals that will extend Internet connectivity and not make using broadband too expensive. As conditions of approving the acquisitions, Charter had to promise that for seven years, it would not impose data caps on broadband users who can run up big bills when watching online video. Charter also agreed to extend its Internet footprint to two million more homes and to offer a cheaper broadband service to low-income households.

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