backtop


Print 21 comment(s) - last by StevoLincolnit.. on Jul 1 at 10:52 PM

It hopes cost savings will find their way into prices

AT&T's potential acquisition of DirecTV has many feeling skeptical due to the possibility of higher prices and fewer choices for consumers, and the telecom company's latest remarks in hearings with lawmakers didn't seem to ease that skepticism.

According to Reuters, AT&T CEO Randall Stephenson told lawmakers at hearings in the House of Representatives and the Senate that he can't promise lower prices for consumers "dollar-for-dollar" in the way of savings from lower content fees. 

However, he does see potential savings in other forms. 

"One would have to believe in the market and the market pressures, and that market pressures will compete margins away and cost savings will find their way into prices," said Stephenson.

DirecTV CEO Michael White added that savings could possibly be seen in the way of value bundles, but that committing to lower prices is difficult because of current content prices.
 

Both companies agree that a merger would allow them to provide rural areas with better Internet services and compete with cable companies.

But many are still concerned about what such a merger means for competition in the cable market, since both AT&T and DirecTV are in the same business. 

The Justice Department and the Federal Communications Commission (FCC) will ultimately decide the fate of the merger. 

AT&T and DirecTV announced their $48.5 billion USD merger just last month. 

The merger comes at a sensitive time when consumers, lawmakers and the tech industry are still dealing with Comcast's $45 billion USD purchase of Time Warner Cable. 

Source: Reuters



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

Seriously?
By Belegost on 6/25/2014 1:55:42 PM , Rating: 3
[quote]"One would have to believe in the market and the market pressures, and that market pressures will compete margins away and cost savings will find their way into prices," said Stephenson.[/quote]

Well that might be believable if there was any sort of free market to exert such pressures. But given that the only competitors here are Dish and the local cable operator, I see an oligopolistic market with little to no pressure on pricing.

So unsurprisingly this quote is complete bulldung.




RE: Seriously?
By rdhood on 6/25/2014 2:18:40 PM , Rating: 2
quote:
Well that might be believable if there was any sort of free market to exert such pressures. But given that the only competitors here are Dish and the local cable operator, I see an oligopolistic market with little to no pressure on pricing.


And where I am, there is no local cable operator. There is ONLY DISH and DirectTV. There is no "free market to exert such pressures".


"It's okay. The scenarios aren't that clear. But it's good looking. [Steve Jobs] does good design, and [the iPad] is absolutely a good example of that." -- Bill Gates on the Apple iPad

Did You Partake in "Black Friday/Thursday"?
Did You Partake in "Black Friday/Thursday"? 





0 Comments












botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki