Lawmakers get few answers on Comcast/NBC deal

Brian Roberts (L) Chairman and CEO of Comcast Corp. listens as Jeff Zucker (R) President and CEO of NBC Universal speaks during a hearing held by the House Communications, Technology and the Internet Subcommittee on “An Examination of the Proposed Combination of Comcast and NBC Universal” on Capitol Hill in Washington February 4, 2010.

WASHINGTON (Reuters) - U.S. lawmakers on Thursday raised concerns that the Comcast deal to take control of NBC Universal could limit customers' access to programing and drive up cable prices.

They got few answers from top U.S. cable provider Comcast and key regulators reviewing the $30 billion joint venture that would give Comcast a 51-percent stake in NBC Universal from General Electric Co.

Congress does not directly approve such deals but has the ability to air public concerns.

Comcast Chief Executive Brian Roberts told the Senate Commerce Committee that the company was expecting a return on its investment, some of it borrowed, to be "positive and hopefully double digit."

While the deal is worth a total of about $30 billion, he said Comcast was putting in some $6.5 billion in cash.

Lawmakers got few specifics about how Comcast now deals with rivals who buy its content -- a critical issue since Comcast is buying a majority stake in NBC Universal precisely for access to a huge stock of movies and television shows.

Senator John Kerry of Massachusetts was generally positive on the deal and said he had "immense respect" for Roberts.

"I have an open mind on this," he said.

Senator Maria Cantwell took the cable industry to task, citing complaints from Washington state residents about access to Olympic coverage. "I guess I'd like to say at this point in time, I can't support this merger," she said.

Senator Byron Dorgan, from South Dakota, took a middle ground, saying, "I think if this merger is approved, it's going to be approved with conditions."

Christine Varney, head of the Justice Department's antitrust division, and Julius Genachowski, chairman of the Federal Communications Commission, both firmly declined to discuss their review of the massive deal.

Genachowski pledged to hear out the concerns of rural television viewers, as well as others. He said the FCC would take all relevant issues into consideration.

Varney, who also declined to discuss it, pointed to a series of challenges her division has made to mergers of all sizes. "I can assure you that there is no rubber stamp at the Department of Justice," she said.

Senator Claire McCaskill asked Comcast's Roberts if the cable giant charged itself the same amount for regional sports content as it charged its competitors in those markets.

Roberts said he probably couldn't answer because the deals varied and because of confidentiality agreements.

Senator Amy Klobuchar asked why basic cable prices were going up four times faster than inflation.

Roberts replied: "We are always focused on that question. I don't think anything specific to this merger would incentivize us to raise prices."

(Reporting by Diane Bartz; editing by Carol Bishopric)