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Net Present Value (NPV) Versus Internal Rate of Return (IRR)
Net Present Value (NPV) Versus Internal Rate of Return (IRR)
Contents
TOC o “1-3″ h z u The NPV approach to valuation is superior to the IRR approach. Suggest how you would approach getting buy-in from senior management. PAGEREF _Toc377396170 h 1Analyze the variation in the results of net present value and the internal rate of return for use in evaluating a combination of projects or portfolio of projects and how the variations should impact decision making. PAGEREF _Toc377396171 h 1Investments in Global Markets” Please respond to the following: (use article below) •From the e-Activity, analyze the factors that should be considered in determining the required rate of return for evaluating projects, in global markets and how this impacts decision making. PAGEREF _Toc377396172 h 3As CFO, discuss how you would defend the difference in the required rate of return for your company on similar projects in the Brazil and India PAGEREF _Toc377396173 h 4
The NPV approach to valuation is superior to the IRR approach. Suggest how you would approach getting buy-in from senior management.Net present value is equal to the sum of the present value of all cash flows associated with a project. The one outstanding feature of NPV is that it steadily decreases as the discount rate increases. Internal rate of return is the discount rate that equates the present value of cash inflows with the present value of cash outflows on investment. It is the rate of discount where the net present value is equal to zero (Siegel, 2008).
NPV is superior to IRR because it makes it easy to compare different projects. There is also the chance that consecutive projects can have their NPVs can be added together. This ensures that poor projects with a negative NPV will not be accepted just because it is paired with a project with a positive NPV. IRR is not reliable because it is possible for one to obtain more than one solution for the same project, this means that a project can be accepted and rejected on different times under same conditions. IRR also overstates the desirability of short life projects over those that are longer. IRR also discriminates against projects that have large capital outlays especially if the projects being compared are mutually exclusive (Siegel, 2008).
Analyze the variation in the results of net present value and the internal rate of return for use in evaluating a combination of projects or portfolio of projects and how the variations should impact decision making.Suppose the cash flows of different time periods of a project are as follows and the cost capital r= 10%, then the NPV would be
Year Cash Flows
0 1000000
1 200000
2 200000
3 300000
4 300000
5 550000
NPV = -1000000 + 200000 +200000 + 300000 + 300000 + 550000
(1.1)0 (1.1)1 (1.1)2 (1.1)3 (1.1)4 (1.1)5
= -1000000 + 181818.182 +165289.256 + 225394.440 + 204904.037 + 341506.720
= 118912.643
Generally NPV is calculated by
= ∑ Ci – Bi
(1 +r)i
Decision rule is if NPV >0 the project is viable, accept project
NPV<0 the project is not viable, reject project
NPV =0 the other factors apart from NPV should be considered.
In our case accept the project.
IRR = r + PV1 [ (r1 +r2)/ (PV1 + PV2)]
Given the following figures,
PV1 = 10000, r1 = 10, r2 = 20, PV2 = 5000
IRR = 10 + 10,000 (10/15000) = 16.7
There should be a predetermined discount rate that is r*= 15
Decision rule is
IRR >r* then the project is viable and it should be accepted.
IRR<r* the project is not viable and should be rejected
IRR=r* analyze other factors apart from IRR
In our case accept the project.
Investments in Global Markets” Please respond to the following: (use article below)•From the e-Activity, analyze the factors that should be considered in determining the required rate of return for evaluating projects, in global markets and how this impacts decision making.When it comes to global markets, the factors that currently influence the determination of the required rate of return is the rate at which the market is currently growing at. The other factor is the future expectations of the market in its physical situation. When it comes to a company going international the question that most shareholders usually ask is what are the risks associated with such an investment? At what growth rate is it? In a nutshell they always want to know how stable a market is and when they will get their initial invested capital back.
When it comes to developing countries, the share holders always make the mistake of setting a higher international rate of investment return (Gregory, 2012). This is because they work under the assumption that developing countries are not stable enough and are more likely not to experience the always projected growth. Well contemporary studies are showing that is not true, this is because companies that invest in developing countries are more likely to experience increase in revenues and profits earned than those who invest in already developed countries.
The other factor considered is the weighted average cost of capital, most companies view that the risks in emerging global markets are higher and that the cost of capital will increase with increase in the risk of any specific market, this makes most firms to simply invest very little in the emerging markets and end up getting little revenue as well (Gregory 2012).
As CFO, discuss how you would defend the difference in the required rate of return for your company on similar projects in the Brazil and IndiaLet us assume that a company has invested in a developed country like the United Kingdom and decides to franchise in Brazil and in India as well. These two are developing countries that most probably do not have the many competing firms. This means that there is a chance of controlling a greater market share in the developing countries than it is possible in the mother country of the firm.
The difference in the required rate of return from a developed country to a developing country is 12 – 15%, this difference is brought on by the fact that the emerging markets offer a great potential of growth and much more is expected. This is as opposed to the developed markets that are already structured and any more investment in the firm leads to diseconomies of scale.
Due to fear of the risks involved investors set high investment hurdles in emerging markets as opposed to the established markets, this makes the investment to be minimal and so is the pay off. A decrease in the hurdles to as low as the ones placed in the mother country will increase the return earned from investment in countries like Brazil and India. This will open more and more opportunities for further investment that will lead to increase the revenue earned as there will be more opportunities to exploit.
References
Siegel, Joel, (2008), Financial Concepts and Tools for Managers, Delta Publishing Company
Gregory V. Milano and Jeffrey L. Routh – CFO.com | US February 15, 2012
Dark Ages
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Dark Ages
When the roman empire crumpled, Europe was besieged with war, famine, plague and persistence war that was merely interrupted with short periods of peace. This is said to have persisted for over 1000 years. The Roman Empire was under siege by thugs from the Northern European frontiers and this was rare since it had never been attacked. Slaves rose to enslave their own masters and the cities in Rome overflowed with blood of its own citizens (Gibbon 35). Friends became foes and the siege for Rome was perceived as a profit making undertaking and the need for power. Carolus and his rebel army was the pioneer for the war on Rome and in order to conquer the city they strangled it from outside and controlled the supply of its food (grains) and eventually the city began to die from within due to insufficient supply of food (YouTube, 2012).
There was intense starvation and death of people turning the initially powerful and glorious Roman empire into a city of hunger and corpses of the dead people. Buildings were burnt to the ground making the Roman citizens helpless as the great monuments of Rome were destroyed and the initial stones from the ruins of the buildings were used to make other forms of shelter. The dark ages was first used by scholars by comparing it to the classical periods in which it was stated that the classical period was better, brilliant and better unlike the time during the fall of Rome in which the people’s lives were destitute and dark, unimaginable. It is mentioned that during the dark ages, the emperor at the time was Jesus Christ. There seems to be continued allusion to religion, specifically Christianity as the hope for the hopeless during the dark ages.
Religion is presented as a core facet that could have played an integral role in the fall of the Roman Empire. Christianity offered some source of peace and given that during the dark ages people were angered, grieved and disillusioned, it is stated that Christianity was the only hope for most people during the dark ages (Durant 443) Irrespective of these assertions, the early Christians were faced with persecutions as most of them were killed. Columbus was also a Christian and he understood that through having more people converted as he attributed his success as an emperor and this implied that Nazi’s success in his leadership had to be endorsed by resilience. Columbus’ brutality was stated to be legendary and for many centuries after the fall of the Rome the Western Europe remained in thick shadow of chaos and death of people.
During these dark ages, it was assumed that almost half of the population perished making it completely difficult to bury them. A notable aspect in the videos is when Justinian (the emperor of Eastern Roman Empire or the Byzantine Empire) was trying to reunite the Old Roman Empire. The population of Italy then (who had now been successfully intermingled with Germanics for about 100 years), saw the Byzantines as invading Greek-speaking conquerors but not as well-intentioned kinsmen (Durant 446). This was ironic since the emperor intended to unite them and create cohesion among people through having them interact freely and without any form of feat of attacks. In spite of these assertions the Western Europe part was divided by Barbarians and this made it to remain in darkness, hunger and lack of peace due to continued fights.
It is imperative to note that the attacks to the Roman empire that resulted in the dark age were engineered by the barbarian soldiers who by definition, are an illiterate group of warriors, directed by tribal chiefs or warlords, whose main intention is to take from others what they can, just as it was the case during the initial attack to the Roman empire. War, plunder, and rapine were their modes, primarily out of need (and often out of desperation). However, it is stated that in repeated historic examples when the barbarians invade and conquer rich, agricultural and urbanized lands, it scarcely takes one generation for the barbarians to adopt the culture of the conquered. This was the case with these attackers who are said to have wanted to be ‘Romans’ themselves (Gibbon 39).
One of the great surprises the video sets the student up for is the truth about Charlemagne’s rise to power during the 8th Century. The movie presents his rise as a singular accomplishment, hinting that he may have killed or employed someone else to kill his brother, Carloman II in order to consolidate power. In fact, Durant notes, his predecessors, Pepin I and Pepin III laid the political groundwork Charles built upon (461), and speculation about Carloman’s death is meaningless without documentation. Pepin I and Pepin III were the great leaders who unified Gaul, establishing France as a kingdom to be reckoned among the powers of the time (461).
Gibbon pays special attention to Pepin I as having taken the blessing of the Church in his coronation as king of the Franks after the fashion of the Old Testament kings of Israel, establishing his state as submissive to the Roman Pope (23). However, it was especially Pepin III who had the insight that the Church would be a useful ally in ruling the newly unified people (Durant 461). This crafty pose put the influence of the Church behind the military and political advances of the later Carolingians, a position Charlemagne was especially successful in using to his advantage (467).
None of this, however, detracts from Charlemagne’s greatness. His conquests in the name of Christianity unified central Europe from Germany to Italy for the first time in hundreds of years. Mayr-Harting suggests that Charlemagne’s imperialist campaigns were as likely conducted on the basis of what today we might call homeland security, as protecting one’s allies may involve conquering their enemies (1113 – 4). Another compelling reason for Charlemagne’s European campaigns had to do with access to valuable trade, especially the wine trade of the Rhine, which was very profitable, yet required expansive conquest for its protection from the Saxons (1114 – 5). As The Dark Ages video celebrates and Airlie confirms, Charlemagne engineered military success with craft, ruthlessness, and skill (94). While he often cited his mission as one of spreading Christianity, the brutality of his treatment of captives argues for a measure of disbelief on that issue.
For instance, slaughtering 4500 captives in the name of Christ (Mayr-Harting 1116) might not convince anyone to believe in the mercy of the Christian God, but it could very well convince people that they should do whatever such a vicious conqueror instructed. But, setting aside his motives and methods in warfare, his success remains indisputable, and that success led, eventually to his crowning as Emperor of Rome on Christmas Day, 800 (Durant 469, Mayr-Harting 1121, Gibbon 33). That the details of that coronation remain unclear (Durant 469), and the motives of both Pope Leo III and Charlemagne himself seem divergent (Mayr-Harting 1123), there is little argument that it was effectively the beginning of Holy Roman Empire (1132).
Charlemagne’s greatness extends beyond his coronation, though, into the arena of domestic programs that show a remarkable degree of character for such a merciless oppressor (Gibbon 34). Even Gibbon, whose regard for Charlemagne is often apparently reserved, acknowledges Charlemagne’s aspiration to develop schools and generalize education in his empire worthy of praise. He says of this noble motive: “the curiosity of the human mind must ultimately tend to its improvement, and the encouragement of learning reflects the purest and most pleasing luster on the character of Charlemagne” (36). Even so, his laws and martial attentiveness leave room for criticism, the laws, if noble and complex, being strung together rather than systematic (35), and the military successes were at the same time inconsistent with any claim to Christian loyalty and marred by unfortunate losses (37).
Works Cited
Airlie, Stuart. “Narratives of Triumph and Rituals of Submission: Charlemagne’s
Mastering of Bavaria.” Transactions of the Royal Historical Society 6.9 (1999):
93 – 119. JSTOR. Web. 4 Dec 2012.
Durant, Will. The Story of Civilization (Vol. 4). New York: Simon and Schuster, 1950.
Print.
Gibbon, Edward. The Decline and Fall of the Roman Empire (Vol. 3). New York:
Random House, n.d. Print.
Mayr-Harting, Henry. “Charlemagne, the Saxons, and the Imperial Coronation of 800.”
English Historical Review 111.444 (1996): 1113 – 1133. JSTOR. Web.
4 Dec 2012.
Net Neutrality
Net Neutrality
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Net neutrality refers to the standard that governments and internet service providers ought to employ to treat the entire data in the internet equally without being selective or charging in a different way by user, content, site, platform, application, type of attached equipment, and methods of communication. In simple terms, it is the opinion that all internet traffic be cared for equally. This permits those on the internet to simply communicate and carry out business with no intrusion from the third party. It is very much different from closed internet where already well-known companies or governments favor particular users. Closed internet might have restrictions on the access of essential web services or even filter out web contents. However, this paper explains more about net neutrality according to the extensive debate that went on particularly in the United States about whether this neutrality should be required by law (Cheng,2011,Pil and Kim,2010,Thierer,2012 ).
As the debate about the issue continues, advocates of net neutrality have gone ahead to raise concerns about the capability of broadband providers to make use of their last mile infrastructure to obstruct internet applications and the contents such as websites, services, and protocols. They also raised anxieties whether the same providers will even block out other competitors. Nevertheless, opponents of net neutrality maintain that telecom companies are up to impose a tiered service model for the purpose of controlling the pipeline and by this means do away with competition, create false shortage, and force subscribers to buy their or else uncompetitive services. Many, including the founder of internet, Vinton cerf and a core- inventer of internet protocol believe net neutrality as primarily important as a protection of existing freedoms. The web creator, Tim Berners-Lee and many others have also spoken positively concerning net neutrality (Barley, 2013 and Marsden, 2010).
The idea of ‘net neutrality’ is that each website that is accessed through an ISP, such as Verizon Wireless or Comcast acquires identical bandwidth and speed. On the other hand, the court ruled that ISPs could not be forced on issues of net neutrality. In reality, they will at present have a motivation to charge higher fees to websites looking to have quicker access and content delivery. Services such as Netflix and Hulu would be forced to pay a premium, since they cannot pay for the slow streaming of their content. Furthermore, ISPs can randomly choose to slow down the velocity of any website they decide, such as that of contestant, or less than admiring news outlets (Barley,2013 and Marsden,2010).
As far as the digital world is concerned, the ruling is a blow to internet free will. There will be also higher cost of premium being passed back to digital advertisers. It also means that service providers like Hulu will also increase their rates of charges for advertising on its network as it is currently paying higher fee to ensure high speed access of content. The popular subscription based services could pass on that the additional bandwidth charge onto its end customers, although social media platforms would have no option but to pass the charge on to advertisers, given that its consumers get them for free. This implies higher charges for social media show ads and promotional campaigns. The ruling will also make it hard for brands to force traffic to their personal website. A big company similar to, say Coca-Cola, can have enough money to pay for simple way in to its Journey website, which is filled with its own content. In order for smaller brands to obtain similar type of bandwidth, it would be a climbing task to acquire that sort of marketing budget accepted (Marsden,2010,Cheng et al.,2012,Powell and Cooper,2011).
The experience of watching video online could also become a hit soon as either flawlessly smooths movies on Netflix or frozen and frustrating videos from the site of smaller firms which cannot afford to pay extra fee. This means that the reason has nothing to do with superiority in technologies used by these companies but has something to do with money. It therefore depends on how much companies are willing to pay to move their content on to fast internet lanes.The proposal for new set of network neutrality rules likewise threatens to undermine the FCC’s long held attitude of ensuring equivalent access to all contents. It would be a key success for the network providers, which pays out large sums of money a year to sustain and upgrade their networks. The providers argue that companies that consume the most bandwidth typically with video streams ought to pay additional for such privilege(Powell and Cooper,2011,Crocioni,2011).
The most affected in this ruling are the digital marketers as digital advertisers have to bear the high cost of bandwidth passed to them. Others include service providers like Hulu, Netflix, and organizations like yahoo, NBC, LnkedIn which all have to pay for the additional cost of bandwidth. The social media and content websites are also affected since it will be very difficult for them to enter the same play field except if they are ready to pay subscription fee. Other proponents group like consumer advocates, human rights organizations, online companies, technology companies, Vonage, eBay, Amazon, InternetActiceCorp(IAC), Microsoft, along with other companies and internet users that had taken a stance in support of network neutrality are also likely to be affected either directly or indirectly(Crocioni,2011,Varnelis,2012,Caves,2012).
Then there is also the merger between Comcast and the Time warner which is too being questioned by Connecticut Senetor, Richard Blumenthal. The Comcast and Time Warner cable execs is questioned how their merger would affect regional sports programming. But they waved it off as a stupid question. Comcast and TWC, however, in their evidence before the senator said there ought to be no worry about the union that affects regional sports channels since Comcast and TWC do not at present have any overlap with these channels. Needless to say, this is not about overlap but about utilizing a mixture of assets from both Comcast and TWC to compel customers off of the only genuine remaining competition in the pay TV market, that is, satellite service from direct TV and Dish. The two largest players in local sports coverage are Comcast, via its various Comcast SportsNet contributions, and FOX, which controls large number of local sports channels. These regional channels frequently carry the greater part of games in markets with several sports teams for the whole thing apart from NFL that is considered available via a local broadcast TV station (Marsden, 2014, Owens, 2013 and Caves, 2012).
Nonetheless, sports offering for both FX and Comcast differ in their availability to people across several pay TV platforms. FOX is a content company that wants its shows seen by as many people as possible. Only a handful of FOX sports stations are not available to both Direct TV and Dish subscribers in their area across the whole list. FOX has at least some agreements with Direct TV in all of its markets totaling to its terrestrial cable operators which is not true for the case of Comcast. Comcast start at offering satellite providers access to a number of its popular sports offerings out of anxiety that it will drop its monopoly on the local pay TV business. Time warners cable (TWC), Comcast’s merger partner is trying to copy its larger companion’s strong monopolistic position with SportsNet L.A that is jointly owned by Dodgers and TWC. Since TWC is not willing to move on the price tag for access to the Dodgers who at present have the power of doing fine so far this period, Considerably lager percentage of people in L.A. have no way of watching the majority of Dodgers game(Marsden,2014,Owens,2013 and Springer,2014).
The merger between Comcast and Time warner Cable only gives the joint company extra power in bargaining with local sports teams. This situation is considered true particularly with the anticipated deal with charter that would provide a combined Comcast/TWC the additional neighboring coverage in L.A. and much of the East Cost. The Mets games in NYC are shown on SNY which is jointly owned by TWC and Comcast team. In this state of combination, the cable companies would own one third of the nation. The station is by now out of access by Dish customers in the city. There is nothing to stop Comcast, particularly when it becomes the leading cable and broadband provider in NYC to use the ownership chance in raising the price to be charged to direct TV. This will consequently compel Satellite Company to either pass the cost on or drop the station. In L.A, the addition of new areas of the city by Comcast would bring Dodgers games to several people, though would also imply that the company has less reason to share with Direct TV or dish. Comcast has not at all done anything to demonstrate its interest in making sports content accessible to the wider market .Even its online Olympics coverage was only accessible to pay-TV subscribers eager to pay for service tiers that comprised every NBC news and sports channel. With more money behind it, the bigger Comcast will only carry on to influence restricted regional sports deals for the purpose of keeping subscribers from cutting the cord and to convince sports fans to stay away from satellite(Sharffer and Jordan 2010,Dumas,2012,Springer,2014).
Comcast’s billions of dollars achievement of Time Warner Cable (TWC) is anticipated to be carefully examined by the section of justice and Federal Communications Commission (FCC), and it could be fruitless in case the agencies make a decision that the merger would considerably lessen competition and hurt consumers. Still, in a case where Comcast wins agreement, the merger might need consumer guard requirements that would make it difficult for Comcast to exercise its increased size in conducts that make the TV and Internet markets less spirited. Comcast said it anticipates regulatory assessment to take nine to twelve months. At present, they are looking at what authority the department of justice and FCC may employ to obstruct or change the projected achievement. Telecom specialist Harold Feld, senior VP of consumer advocacy group Public Knowledge, clarified that the department of justice(DOJ) and FCC each have power here, but the procedures they employ are rather different (Sharffer and Jordan 2010,Dumas,2012).
The former FCC official advises overcome of “anti-consumer” Comcast/TWC merger where he says that the department of justice does this under antitrust. He says that this case has to go to the federal court to block the deal, and they have the burden of evidence under a customary antitrust investigation. The former official also says that the merger would have to demonstrate that there is a considerable probability that the transaction would lessen competition in some appropriate market. In this case, he adds that the department of justice would have to prove its case by prevalence proof(Sharffer and Jordan 2010, Cooper,2013).
The FCC’s power comes from the reality that Time Warner Cable would have to move Cable Television Relay Service licenses and telephone service licenses to Comcast. The FCC is seen to be a bit different since it is in fact the judge. This means that FCC as a commission has to decide whether the move of the licenses serves the community interest. The weight is on the applicants to demonstrate the existence of enough the public interest gains to counterbalance any possible problems to the public concern (Sharffer and Jordan 2010,Gainer et al., 2013).
The FCC has the option of approving the acquisition absolute or endorses it with conditions. If Comcast have the same opinion to the conditions, then the deal will sail on very well. In case the FCC needs to challenge, it would not straight away refuse the merger. The FCC would announce concerning questions of material fact, questions we cannot respond from the present condition of the documentation on whether the merger serves public interest. Comcast has positioned its focus on the multichannel video programming distribution (MVPD) market, claiming that the attainment of TWC would bring Comcast from 22 million to 30 million subscribers, or less than 30 percent of the countrywide total. Comcast also offered to separate itself from three million subscribers in an offer to get under 30 percent and possibly calm regulators (Yoo and Lee,2014, Sharffer and Jordan 2010).
Moreover, Comcast has pointed out that it does not contend alongside Time Warner Cable in any individual cities or towns. That information is descriptive of how small competitions survive in the cable market, as the vendors have successfully separated up regions to the point where every consumer have little choice. To Comcast’s antitrust lawyers, it is positive in the sense that the merger will not lessen the number of cable options clients have. Comcast’s market description is not the only one that will be proposed. Consumer support group Free Press maintain that the merger would provide Comcast control over the majority of US triple play market for video, voice, and Internet service. The group says that the merger in addition will give extraordinary market influence over consumers and an extraordinary capability to make use of its influence over any channels or businesses that desire to get to Comcast’s customers(Walters,2011,Manne 2014 , Chan-Climsted ang Guo,2011).
In listing all the ways the merger with Time Warner is pro-consumer, Comcast states that the highly spirited US Internet market will only become improved. Less than 30 percent of residential families, Comcast would have improved discussing control in a diversity of markets, which it could possibly employ to hurt contestants and its own clients. Comcast would also have extra room to grow as proprietor of TWC. The CableTV.com, which tracks accessibility of cable services, gave details that Comcast’s shared footprint with Time Warner Cable would be 214 million Americans, or about two-thirds of the US inhabitants, up from 129 million for Comcast today. Not all of those people subscribe to Comcast, particularly in places that have more than one cable company or a different player like Verizon FiOS, although the number give details of how large Comcast’s potential can be seen betterStuke and Grunes, 2014, Shaffer and Jordan, 2013).
Comcast’s enlarged size would craft it simpler to insist on payments in the market from Internet bandwidth providers such as Cogent or Level 3, as an alternative of proceeding with the exchange traffic for free of charge as has been the custom. Comcast could also use better negotiating influence to acquire elevated payments from other phone providers for the capability to make calls to Comcast customers (Bonna, 2014).
Some of the supporters of this merger comprise Comcast and Time Warner themselves as they say that they have willingly shed subscribers to keep their size at spirited level. In addition, they said that internet access regulations will keep them from discriminating against video competitors online such as You Tube or Netflix. Another supporter of the merger among others is the Silico Valley CEO who says that the merger will be good for consumers since many of them will at present start to receive quicker broadband internet services. He also added that Comcast is the industry leader in broadband technology known as DOCSIS 3.0 that provides almost all of its customer’s access to networks competent of 100 Mbps or more which greatly exceeds TWC top speeds today. Silico also says that the merger will help accelerate the US leadership which is already ahead of Europe since it has faster speeds and is one of the only two countries with fully developed broadband technologies. He added that Comcast’s deal with TWC will also indicate an improved video understanding for more Americans and that Customers will see no decrease in competition while gaining quicker Internet speeds and more diverse programming choices as Comcast and TWC operate in different communities. Last but not least, Comcast’s acquisition of TWC will be a net plus for network neutrality which is one of the top main concerns of consumer supporters. This means that consumer supporters will be one of the supporters of the merger to a certain level(Sharffer and Jordan 2010, Gilroy,2012, Waternam and Choi , 2012).
Senetor Al Franken, is one of those against the merger for his vocal criticism. He is seen as the loudest opponent of Comcast’s bid for Time Warner, evidenced by his letter to the trade group Computer and communications industry Associations. In this letter, he asked for the group’s view on the 445 billion mergers. He claims that Comcast will wind up with 40% of the broadband internet market if this is approved. The senator said that this power is too much for a single company which according to him could act as a powerful gatekeeper for internet content and services in the US homes. Other opponents among others include service providers like Netflix which reported through its executives that it is opposed to the merger, arguing that consumers would be harmed in case comcast is left to control more than 40% of broadband internet subscriptions and 30% of the cable subscriptions. This shows just a few highlights of the existing opponents and supporters of the merger(Curtin 2010 and Wallsten, 2010).
References
Cheng, H. K., Bandyopadhyay, S., & Guo, H. (2011). The debate on net neutrality: A policy perspective. Information Systems Research, 22(1), 60-82.
Pil Choi, J., & Kim, B. C. (2010). Net neutrality and investment incentives. The RAND Journal of Economics, 41(3), 446-471.
Thierer, A. D. (2012). ” Net Neutrality”: Digital Discrimination or Regulatory Gamesmanship in Cyberspace?.
Bailey Jr, C. W. (2013). Strong copyright+ DRM+ weak net neutrality= digital dystopia?. Information Technology and Libraries, 25(3), 116-127.
Marsden, C. T. (2010). Net neutrality: towards a co-regulatory solution. A&C Black.
Cheng, A. S., Fleischmann, K. R., Wang, P., Ishita, E., & Oard, D. W. (2012). The role of innovation and wealth in the Net neutrality debate: A content analysis of human values in Congressional and FCC hearings. Journal of the American Society for Information Science and Technology, 63(7), 1360-1373.
Powell, A., & Cooper, A. (2011). Net neutrality discourses: comparing advocacy and regulatory arguments in the United States and the United Kingdom. The information society, 27(5), 311-325.
Crocioni, P. (2011). Net Neutrality in Europe: Desperately seeking a market failure. Telecommunications Policy, 35(1), 1-11.
Varnelis, K. (2012). Networked publics. The MIT Press.
Caves, K. W. (2012). Modeling the welfare effects of net neutrality regulation: A< i> Comment</i> on Economides and Tåg. Information Economics and Policy, 24(3), 288-292.
Marsden, C. (2014). Net Neutrality Regulation in the UK: More Transparency and Switching. Journal of Law and Economic Regulation (Seoul, Korea) Forthcoming.
Owens, A. (2013). PROTECTING FREE SPEECH IN THE DIGITAL AGE: DOES THE FCC’S NET NEUTRALITY ORDER VIOLATE THE FIRST AMENDMENT?. Temp. Pol. & Civ. Rts. L. Rev., 23, 209-265.
Springer, S. (2014). Stephenie’s Hyperlinked Blog. Director
Dumas, B. M. (2012). Diving Into the Bitstream: Information Technology Meets Society in a Digital World. Routledge
Cooper, A. (2013). How Regulation and Competition Influence Discrimination in Broadband Traffic Management: A Comparative Study of Net Neutrality in the United States and the United Kingdom (Doctoral dissertation, University of Oxford).
Gaynor, M., Lenert, L., Wilson, K. D., & Bradner, S. (2014). Why common carrier and network neutrality principles apply to the Nationwide Health Information Network (NWHIN). Journal of the American Medical Informatics Association, 21(1), 2-7.
Yoo, E., & Lee, H. (2014). 9 The Impact of Digital Convergence on the Regulation of New Media in Korea. Policy and Marketing Strategies for Digital Media, 138.
Stazi, A. (2012). Digital copyright and consumer/user protection: moving toward a new framework?. Buffalo Law Review, 1111, 92.
Walters, B. (2011). The Near Future Impact of Smart Mobile Devices on Electronic-Commerce and the Growth of Mobile-Electronic-Commerce.
Manne, G. A. (2014). Beneficence Is Beside the Point: The Antitrust Realities of the Comcast/Time Warner Cable Merger.
Chan-Olmsted, S. M., & Guo, M. (2011). STRATEGIC BUNDLING OF TELECOMMUNICATIONS SERVICES: TRIPLE-PLAY STRATEGIES IN THE CABLE TV AND TELEPHONE INDUSTRIES. Journal of Media Business Studies, 8(2).
Stucke, M. E., & Grunes, A. P. (2014). Crossing the Rubicon: Why the Comcast/Time Warner Cable Merger Should Be Blocked.
Shaffer, G. L., & Jordan, S. (2013). Classic conditioning: the FCC’s use of merger conditions to advance policy goals. Media, Culture & Society, 35(3), 392-403.
Bona, J. M. (2014). The Comcast-TWC Merger: Limit the Government’s Options. CPI Antitrust Chronicle, April.
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