Comcast Acquires NBC Universal

Comcast is one of the largest cable services providers in the United States. It is also a known leading ISP (internet service provider) offering cable services with broadband DSL as well as digital phone. Comcast has been successful in providing competitive services and products to its consumers. But perhaps what has made it stand out among other competitors in the market is the company’s willingness to experiment with different kinds of offerings. The Comcast Xfinity internet and xfinity speed test are two such offerings that have been introduced to the market by the company in order to attract a larger customer base.

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Comcast uses two kinds of technologies to provide broadband internet services to its customers. One of them is its High Speed Internet access which is available through cable television and the second is the High Speed wireline Internet connection (HIS). The former is more commonly known by the name’Comcast Cable’ while the latter is referred to by the name xfinity. The former is a faster service which offers higher bandwidths as compared to the latter. Comcast’s xfinity broadband service is available in more than one hundred and twenty cities across the United States. Comcast has also decided to enter into agreements with other cable companies and telephone companies to expand their services.

One can easily understand why Comcast was accused by many bloggers and netizens of being a carpetbag scammer. The reason for such allegation is that the entire premise behind Comcast’s entry into the ‘bartering’ game is to destroy traditional cable television and lure customers towards broadband internet. By destroying cable television, Comcast would be able to gain subscribers at a much faster rate than what they could have done had they not entered the ‘bartering’ arena. The company’s entry into the broadband industry is therefore being blamed on many different causes and factors.

The first incident that brought about charges of Comcast being a carpetbag scam was the cancellation of its television service. This happened at the end of December last year. The whole reason for cancelling the service was to introduce more flexible choices for the customers of Comcast. In simple words, the company wanted to give cable television a better shake by offering broadband service instead. By offering more choices and giving better services, the company hoped that it would be able to retain its subscribers. It is reported that Comcast executives were in telephone talks with the heads of Time Warner Cable, AT&T, Verizon and the other leading cable television providers when they decided to scrap the television service.

Another incident which took place within the month occurred when Comcast decided to launch its Xfinity brand of broadband internet. The company’s main competitor in this venture is the arch enemy, Time Warner which introduced the Xfinity wireless broadband internet service. This service is supposed to be a replacement for the famous Time Warner cable network which was recently sold to a company called Comcast. However, Comcast has already made it clear that it would be forming a joint venture with Time Warner Cable as well as the other leading cable operators in the country.

While all these developments took place, Comcast was forced to cancel plans of expanding its wired broadband service outside the city of Philadelphia. The reason cited for this is that the Federal Communication Commission (FCC) had passed a law forbidding telecommunications companies from sharing their cable lines with competitors. In the current scenario, Comcast cannot share its fiber optic cables with its competitors because the FCC had imposed a limit on the number of miles per second that any ISP can share a cable line with his customer. Based on this fact, Comcast could not expand its wired broadband service to the outer areas of the city of Philadelphia.

According to analysts who were privy to the development, Comcast had been expecting for some time for this issue to arise. But after it was notified that Comcast would acquire the remaining tubes of the former NBC Universal system, the atmosphere changed completely. The acquisition of NBC Universal would also result in a serious erosion in the financial situation of Comcast. However, Comcast did not announce any immediate comeback and it has reserved its position for the future. This hints that the company might be prepared to expand its services outside the city of Philadelphia.

On the other hand, a top management official indicated that there are no such plans at present. He also refused to comment on whether the deal would materialize or not by saying that it was a private matter between the two companies. Nevertheless, Comcast was able to raise a $1.2 billion offer to purchase the remaining tubes of NBC Universal on December 19th, 2021. The offer was valued at around $3 billion, making it one of the biggest deals in the company’s history. The transaction was completed within a few hours of the bid being advertised on the market. The transaction is expected to close by the end of February, 2021.

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