By Liz Goncalves and Katie Murphy

1
By Liz Goncalves and Katie Murphy
2
Our Goals

• Background of the Comcast company
• Its monopolistic tendencies
• To discuss limited involvement in the communities
  it services, specifically Holyoke and
  Springfield
  
• What can we do?

3
Comcast Company Profile

• Founded in 1963 by Ralph J. Roberts
• Current CEO- Son, Brian L. Roberts
• Largest Cable Provider in the nation, wiring over
  24 million subscribers
  
• In 2005, Comcast reported its highest yearly
  revenue to date 22.225 billion USD
  
• Subscribers account for just over 28 of the 96.8
  million US residents with cable or satellite TV
  service (2007).
  

4
Comcasts Rise to the Top

• The 1996 Telecommunications Act deregulated the
  media market
  
• This resulted in allowing Comcast to wire a
  vastly bigger percentage of areas in the United
  States
  
• Comcast was able to break into the internet and
  phone industry, as well
  

5
Comcast vs. FCC

• FCC regulates a 30 limit for what cable
  operators can control
  
• Comcast is approaching the cap ownership at
  owning roughly 28 of U.S. cable market
  
• Comcast argues that limiting ownership is no
  longer necessary

6
Comcast vs. FCC

• Comcast complains that there is a sufficient
  amount of competition due to Video options on the
  internet (i.e., YouTube)
  

7
Cost of Deregulation?

• Deregulation of broadband has negatively impacted
  the market
  
• U.S. badly lags behind many western European and
  Asian countries when it comes to broadband
  availability, speed, and price.
  
• If the cable industry was deregulated, it could
  result in even higher costs and fewer service
  options to consumers
  

8
Comcasts Rise to the Top

• In 2001, Comcast acquired ATTs cable division
  for 44.5 billion USD
  
• At that time ATT was the largest cable provider
  in the nation

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Comcasts Rise to the Top

• In 2005, Comcast attempted a takeover of Disney
  that would have estimated for 65 billion USD
  
• If the deal would have gone through, Comcast
  would become the biggest media conglomerate in
  the world.
  

10
Comcast Adds More Subscribers

• In 2002, Adelphia, the third biggest cable
  provider, filed for Chapter 11 bankruptcy
  
• The FCC approved Comcast and Time Warners sale
  bid of Adelphia for 17.5 billion USD
  
• Comcast and Time Warner Agreement

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Subscribers in MA

• Comcasts total subscribers in MA as of December
  2002 1,506,432
  
• After the purchase of Adelphia, Comcasts number
  of subscribers in MA have risen.

12
Comcasts reign on Massachusetts

• Comcast wires the majority of the households in
  MA
  
• It also services more than 78 of Holyoke
  households
  
• And 73 of Springfield households

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Cable Industry Laws

• The FCC regulates that Comcast must strike up a
  contract with each community that it services
  
• Comcast is usually required to fund cable in
  public schools and public access channels
  

14
Comcast in the Holyoke Community

• Holyoke receives back 70,000 a year
• 46,000 of this goes to operating system
  government and cable/educational access
  
• No public access
• Annual scholarship for a Holyoke High School
  Graduate Resident for 2,000/year
  

15
Comcast in the Holyoke Community

• They invest money in school equipment. This
  includes a media room in Holyoke High School and
  other things that are media related.
  
• Help put on musicals in Holyoke.
• Has a little league soccer team, they also make
  donations to the local community, Holyoke
  College, and hospital.

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Comcast in the Holyoke Community

• Mayor Sullivan claims Comcasts revenue is not
  required information for him to know, but can be
  considered public information.
  
• Rates are negotiated by the FCC. Mayor Sullivan
  said that this leaves Little to talk about at
  meetings with Comcast.
  

17
Comcast in Springfield

• Estimated revenue in the Spfld. area 25 million
  USD
  
• Comcast funds 3 organizations
• Springfield Symphony Orchestra, United Way of
  Pioneer Valley, and Urban League of Springfield,
  Inc.
  

18
Comcast in Northampton

• Comcast Gross Revenues 5,964,000 in March
  2006.
  
• New non-profit cable access corporation to
  operate the new studio in the High School. The
  new studio will be open May 1.

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Comcasts role in communities?

• The Comcast Foundation, a social outreach program
  , was founded in 1999
  
• Since its start, Comcast has given over 30
  million dollars back to the communities
  
• This comes out to be less than 1 of its revenue
  for the last ten years

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Comcast Employees

• The average Comcast worker earns about 27,000 a
  year.
  
• Comcast is trying to get rid of their union
  workers and adds a negative stigma to unions.
  Non-union workers are hired and encouraged.
  
• Comcast workers report theyre illegally fired
  for supporting the union or trying to organize
  one.
  
• CWA (Communications Workers of America) and IBEW
  (International Brotherhood of Electrical Workers)
  are fighting to protect Comcast workers interests.

21
Grassroot efforts

• http//www.comcastwatch.com/
• http//www.grassrootscable.org/

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Legislation Ideas

• Write to your congressman
• FCC lowering the cap to less than 30
• Requiring that Comcast be more active in the
  communities that it services