Comcast-NBC Merger Cont

III.  Best Case Scenario: "No Massive Layoffs"
The final point I would like to highlight is how Comcast and this proposed merger is likely to impact the economy.

As the nation's largest cable company and second largest internet service provider, Comcast employs and contracts with numerous business enterprises.  Therefore, the fact that Comcast has demonstrated, at best, a weak commitment to contracting with minority and women-owned businesses is extremely concerning.

The procurement of minority, women and disabled veteran -owned businesses, otherwise known as supplier diversity, has been led by two prominent leaders over the last several years.  Specifically, Verizon and AT&T's efforts in California have become national models of supplier diversity.

Comcast has neither been transparent nor active on supplier diversity.

In 2009, Comcast spent over $315 million in outside procurement in California.  Less than 16% of that total spend, a paltry $48.5 million, were attributed to minority, women or disabled veteran-owned businesses.

Verizon and AT&T directly injected almost $600 million into the diverse business community in 2009, most of it benefitting small businesses, creating jobs in diverse communities.

In stark contrast, Comcast's supplier diversity efforts are negligible.

And yet, Comcast competes head-to-head against AT&T and Verizon.  So when Comcast takes customers and revenue away from AT&T and Verizon, Comcast is siphoning away hundreds of millions of dollars from California's diverse economies.  As a result, this would take away much-needed jobs that otherwise would have been created.

If Comcast is allowed to get bigger and further proliferate their current business practices in California, the state's diverse economies will be put in imminent danger

Mr. Chairman, the scenario that I am presenting is not merely theory.  It is rooted in what Comcast's CEO, Brian Roberts, has already confirmed.  In a previous Congressional hearing, Mr. Roberts all but assured job losses would directly result from the merger.  All that he could promise was that the merger will lead to "no massive layoffs."

It is unacceptable that when everyone is trying to figure out how to create jobs, Comcast's best prognosis is "no massive layoffs."  But Comcast is only following its old MO - gut, cut and strut.

Congress 5, FCC 0
So how come there are such gaping deficiencies in Comcast's application?  A major reason is the lack of public input in the regulatory process.

After today, Congress will have held five hearings on this landmark transaction.  The FCC will have held none.  The FCC took an adequate first step with an announcement of one event in Chicago.  Unfortunately, the Chicago event is classified as a forum, and not a hearing.

I am encouraged by the prospect of more hearings.  But let me say this in closing.

We have learned from the BP disaster what can happen when there isn't diligent and transparent regulatory scrutiny.  That scrutiny must be on the front end, and not an afterthought. 

I sincerely hope that this administration's regulatory scrutiny of the Comcast merger is more comprehensive than its regulatory scrutiny of offshore drilling.  Comprehensive scrutiny requires comprehensive public hearings.  Otherwise, the consequences could be just as disastrous.

Thank you.