A breakdown of the Comcast-Time Warner Cable broadband combination

|About: Comcast Corporation (CMCSA)|By:, SA News Editor

A compelling breakdown of the Comcast (CMCSA +0.7%) - Time Warner Cable (TWC +0.9%) merger by TechDirt concludes the combination of the two firms poses an "extraordinary danger" to consumers in the Internet service market.

Leaning on a tool of economists called the Herfindahl-Hischman Index, TechDirt notes that even before adding in the impact of adding TWC markets or splitting up territories between the brands - Comcast's broadband positions borders on anti-competitive. TWC adds another 13 bps of broadband market share, which under HHI is squared to add 169 points of damage.

HHI reading on TWC-CMCSA = 1600 + (13 x 13) = 1769 to fall in the "moderately concentrated" range before even all the other deal leverage possibilities such as sports, phone, and cable TV are added in.