S. HRG. 113–710 EXAMINING THE COMCAST-TIME WARNER CABLE MERGER AND THE IMPACT ON CONSUMERS HEARING BEFORE THE COMMITTEE ON THE JUDICIARY UNITED STATES SENATE ONE HUNDRED THIRTEENTH CONGRESS SECOND SESSION APRIL 9, 2014 Serial No. J–113–56 Printed for the use of the Committee on the Judiciary ( EXAMINING THE COMCAST-TIME WARNER CABLE MERGER AND THE IMPACT ON CONSUMERS S. HRG. 113–710 EXAMINING THE COMCAST-TIME WARNER CABLE MERGER AND THE IMPACT ON CONSUMERS HEARING BEFORE THE COMMITTEE ON THE JUDICIARY UNITED STATES SENATE ONE HUNDRED THIRTEENTH CONGRESS SECOND SESSION APRIL 9, 2014 Serial No. J–113–56 Printed for the use of the Committee on the Judiciary ( U.S. GOVERNMENT PUBLISHING OFFICE 95–816 PDF WASHINGTON : 2016 For sale by the Superintendent of Documents, U.S. Government Publishing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 COMMITTEE ON THE JUDICIARY PATRICK J. LEAHY, Vermont, Chairman DIANNE FEINSTEIN, California CHUCK GRASSLEY, Iowa, Ranking Member CHUCK SCHUMER, New York ORRIN G. HATCH, Utah DICK DURBIN, Illinois JEFF SESSIONS, Alabama SHELDON WHITEHOUSE, Rhode Island LINDSEY GRAHAM, South Carolina AMY KLOBUCHAR, Minnesota JOHN CORNYN, Texas AL FRANKEN, Minnesota MICHAEL S. LEE, Utah CHRISTOPHER A. COONS, Delaware TED CRUZ, Texas RICHARD BLUMENTHAL, Connecticut JEFF FLAKE, Arizona MAZIE HIRONO, Hawaii KRISTINE LUCIUS, Chief Counsel and Staff Director KOLAN DAVIS, Republican Chief Counsel and Staff Director (II) C O N T E N T S APRIL 9, 2014, 10:06 A.M. STATEMENTS OF COMMITTEE MEMBERS Page Grassley, Hon. Chuck, a U.S. Senator from the State of Iowa ............................ 3 prepared statement .......................................................................................... 60 Klobuchar, Hon. Amy, a U.S. Senator from the State of Minnesota ................... 4 Leahy, Hon. Patrick J., a U.S. Senator from the State of Vermont .................... 1 prepared statement .......................................................................................... 58 Lee, Hon. Michael S., a U.S. Senator from the State of Utah ............................. 5 WITNESSES Witness List ............................................................................................................. 57 Bosworth, Jr., James L., Chairman and Chief Executive Officer, Back9Network Inc., Hartford, Connecticut ........................................................ 11 prepared statement .......................................................................................... 123 Cohen, David L., Executive Vice President, Comcast Corporation, Philadel- phia, Pennsylvania ............................................................................................... 7 prepared statement .......................................................................................... 62 Kimmelman, Gene, President and Chief Executive Officer, Public Knowledge, Washington, DC ................................................................................................... 10 prepared statement .......................................................................................... 114 Minson, Jr., Arthur T., Executive Vice President and Chief Financial Officer, Time Warner Cable Inc., New York, New York ................................................ 9 prepared statement .......................................................................................... 62 Sherwin, Richard J., Chief Executive Officer, Spot On Networks, LLC, New Haven, Connecticut .............................................................................................. 13 prepared statement .......................................................................................... 137 Yoo, Christopher S., John H. Chestnut Professor of Law, Communication, and Computer & Information Science, University of Pennsylvania Law School, Philadelphia, Pennsylvania .................................................................... 14 prepared statement .......................................................................................... 140 QUESTIONS Questions submitted to James L. Bosworth, Jr., by Senator Grassley ............... 162 Questions submitted to James L. Bosworth, Jr., by Senator Hatch ................... 172 Questions submitted to James L. Bosworth, Jr., by Senator Klobuchar ............ 147 Questions submitted to James L. Bosworth, Jr., by Senator Lee ........................ 177 Questions submitted to David L. Cohen by Senator Franken ............................. 152 Questions submitted to David L. Cohen and Arthur T. Minson, Jr., by Senator Graham ................................................................................................................. 176 Questions submitted to David L. Cohen by Senator Grassley ............................. 163 Questions submitted to David L. Cohen by Senator Hatch ................................. 173 Questions submitted to David L. Cohen by Senator Klobuchar .......................... 148 Questions submitted to David L. Cohen by Senator Lee ..................................... 178 Questions submitted to Gene Kimmelman by Senator Grassley ......................... 165 Questions submitted to Gene Kimmelman by Senator Klobuchar ...................... 149 Questions submitted to Gene Kimmelman by Senator Lee ................................. 179 Questions submitted to Arthur T. Minson, Jr., by Senator Franken .................. 159 Questions submitted to Arthur T. Minson, Jr., by Senator Grassley .................. 167 Questions submitted to Arthur T. Minson, Jr., by Senator Klobuchar ............... 150 Questions submitted to Arthur T. Minson, Jr., by Senator Lee .......................... 180 (III) IV Page Questions submitted to Richard J. Sherwin by Senator Grassley ....................... 169 Questions submitted to Christopher S. Yoo by Senator Grassley ....................... 170 Questions submitted to Christopher S. Yoo by Senator Hatch ............................ 175 Questions submitted to Christopher S. Yoo by Senator Klobuchar ..................... 151 ANSWERS Responses of James L. Bosworth, Jr., to questions submitted by Senators Hatch, Klobuchar, Grassley, and Lee ................................................................. 181 Responses of David L. Cohen to questions submitted by Senators Klobuchar, Franken, Grassley, Hatch, Graham, and Lee .................................................... 186 Responses of Gene Kimmelman to questions submitted by Senators Klobuchar, Grassley, and Lee ............................................................................. 285 Responses of Arthur T. Minson, Jr., to questions submitted by Senators Klobuchar, Franken, Grassley, Graham, and Lee ............................................. 292 Responses of Richard J. Sherwin to questions submitted by Senator Grassley . 318 Responses of Christopher S. Yoo to questions submitted by Senators Klobuchar, Grassley, and Hatch ......................................................................... 320 MISCELLANEOUS SUBMISSIONS FOR THE RECORD American Antitrust Institute, Albert A. Foer, President, and Diana L. Moss, Vice President, April 4, 2014, letter ................................................................... 333 American Cable Association and NTCA—The Rural Broadband Association, Matthew M. Polka, President and Chief Executive Officer, ACA, and Shir- ley Bloomfield, Chief Executive Officer, NTCA—The Rural Broadband Asso- ciation, April 9, 2014, joint letter ....................................................................... 330 Consumers Union, Delara Derakhshani, Telecommunications Policy Counsel, and George P. Slover, Senior Policy Counsel, April 8, 2014, letter ................. 337 NAACP and NABOB, Hilary O. Shelton, Director, NAACP Washington, and Senior Vice President for Policy and Advocacy, and Jim Winston, NABOB Executive Director and General Counsel, April 7, 2014, joint letter ............... 359 National FFA Center, W. Dwight Armstrong, Chief Executive Officer, Indian- apolis, Indiana, April 7, 2014, letter .................................................................. 356 RFD-TV, Rural Media Group, fact sheet ............................................................... 361 United States Hispanic Chamber of Commerce, Marc Rodriguez, Chairman of the Board, and Javier Palomarez, President and CEO, April 9, 2014, letter ...................................................................................................................... 328 Veria Living, Eric Sherman, Chief Executive Officer, New York, New York, April 9, 2014, testimony ...................................................................................... 353 EXAMINING THE COMCAST-TIME WARNER CABLE MERGER AND THE IMPACT ON CONSUMERS WEDNESDAY, APRIL 9, 2014 UNITED STATES SENATE, COMMITTEE ON THE JUDICIARY, Washington, DC. The Committee met, pursuant to notice, at 10:06 a.m., in Room SH–216, Hart Senate Office Building, Hon. Patrick J. Leahy, Chairman of the Committee, presiding. Present: Senators Leahy, Klobuchar, Franken, Coons, Blumenthal, Hirono, Grassley, Hatch, Graham, and Lee. OPENING STATEMENT OF HON. PATRICK J. LEAHY, A U.S. SENATOR FROM THE STATE OF VERMONT Chairman LEAHY. I would like to welcome everybody here. The Chair and Ranking Member of the Subcommittee with jurisdiction, Senator Klobuchar and Senator Lee, will be taking over the hear- ing at some point during the morning, and