This guest post by BC Law Professor and Associate Dean of Academic Affairs Daniel Lyons first appeared in the AEIdeas Blog.

Earlier this year, Charter Communications, Incorporated and Cox Communications announced a $34.5 billion proposed merger. If completed, the combined company would become both the largest cable television provider and the largest broadband provider in the country.

At first glance, one might be concerned about a proposal to merge the second and third-largest cable providers into a single behemoth. But to describe the merger in these simplistic terms fails to appreciate both the challenges facing companies in mature industries and the revolutionary changes affecting the telecommunications industry. This proposed deal is not a power grab, but a rational response to a maturing, intensely competitive market. That’s the argument that I’ve made in my latest article as part of the Free State Foundation’s Perspectives series.

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