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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

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By BRB29 on 6/25/2014 2:34:09 PM , Rating: 5
The savings would be in the way of "value bundles" lol!!!

The same value bundles that comcast, verizon and time warner have been pushing down subscribers' throats the extra 300 channels they don't watch, the phone they don't use and the internet speed that gets capped if you want to view netflix.

By zero2dash on 6/25/2014 3:49:17 PM , Rating: 2
Yeah, and (as a DirecTV customer and a former AT&T U-Verse tv/internet/phone customer)....I don't want their bundles.

As far as I'm concerned, I'm keeping my Charter 100/3 $44.99 line for the rest of my life.

I'll keep DirecTV as long as AT&T leaves it alone. The minute that AT&T starts messing around with DTV, I'll be calling to cancel - and the second call will be to Charter and try their new Spectrum tv service. If that ends up being crap, I'm switching to OTA/Netflix/Hulu+ (which we probably oughta do anyway).

U-Verse TV is not bad, other than being worse in HD PQ than DTV; but their internet, for what they charge for those speeds compared to thanks.

I'm happy with our AT&T Wireless, especially now with the share plans being fairly aggressively priced. But I refuse to use any AT&T home services.

By Solandri on 6/26/2014 9:39:30 AM , Rating: 2
I was cleaning house and found a cable bill from 2000. Basic cable TV service was $17/mo. A premium channel add-on was $10/mo. About $1.50/mo extra for the tuner box rental. $28.71 in total.

It's amazing how much cable companies can get people to pay when there's no competition and prices are slowly increased so they don't notice.

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