Charter Communication's planned acquisition of one of its chief rivals, Time Warner Cable, may have an unlikely supporter as Federal Communications Commission (FCC) Chairman Tom Wheeler himself is reportedly keen on having the deal push through.
According to an article by The Wall Street Journal, the FCC chief is seeking to have the merger between two of the largest cable telecommunications companies in the United States approved by the regulatory board.
The report is based on information provided by "people familiar with the matter", who also stated that Wheeler begin circulating a draft proposal to his fellow FCC commissioners to approve the deal as early as this week.
While the commission usually takes about 180 days to complete its deliberation, the decision regarding the Charter-Time Warner Cable merger could run to about 11 months.
One of the biggest concerns the FCC reportedly has about Charter's purchase of Time Warner Cable is its potential impact on the development of other online video companies.
In order to resolve this concern, deal could likely prohibit the two cable companies from preventing content companies from including their TV shows and movies in their offerings to streaming video competitors, as is the case in some television contracts.
The deal could also include other restrictions that would foster the growth of online video.
The Wall Street Journal report highlighted that the combined company could be required to establish Internet service to more households that could provide an alternative to those offered by other companies such as AT&T and Verizon.
Wheeler was said to have indicated before that if cable companies expand their reach beyond their established regions and 'overbuild' into the service areas of other companies, it could help promote competition among them.
However, it is still unclear whether the FCC will require the combined Charter-Time Warner Cable to compete against other Internet service providers since the requirements for a buildout are still under negotiations.
In May 2015, Charter revealed that it plans to acquire Time Warner Cable for $56.7 billion. The company had also purchased the smaller Bright House Networks cable company in a related deal for $10.4 billion.
