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

By Motoman on 6/25/2014 3:15:30 PM , Rating: 2
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

That is the largest pile of BS I have ever seen.

First of all, there ALREADY is no "market pressure" in the cable TV market. You all have MONOPOLIES as it is. This is a key reason why the paid TV industry is so wildly anti-consumer - we're all so f$cking stupid that we give the cable companies regional monopolies. Thereby guaranteeing that we all get f%cked as hard as possible.

And in what universe does merging very few companies into even fewer companies *increase* competition and/or market pressure? Oh right...none.

The whole paid TV industry is a horrible anti-capitalist prank. No free market, no competition, no consumer choice, etc. etc. etc.

You want a *real* market, do this:

1. Immediately eliminate all existing monopolies/duopolies/whatever. And make it illegal to provide any kind of alignment at all between municipalities and paid TV providers.

2. Claim all physical infrastructure as public property, and manage/regulate it the same way that powerlines and telephone lines are. There should be no difference between those industries and the paid TV industry in this manner. Anyone that wants to start up a new paid TV service can get access to said infrastructure in the same manner as a new phone provider could. Make it the same.

3. Require all paid TV services to include all OTA programming they'd normally get in their area as part and parcel of any paid TV service package.

4. Require all paid TV services to offer all channels on an a la carte pricing model. Offer bundles too if you want, but regulate the a la carte pricing to be actually reflective of cost-to-serve so that they can't offer a 100-channel package (with 2 useful channels) for $40 and then offer just ESPN on it's own at $35.

Probably a good start. Give me a call when we implement that. Otherwise, STFU with your horrifically retard3d comments about "market pressures."

RE: please
By letmepicyou on 6/25/2014 4:43:51 PM , Rating: 2
I agree 100%, especially with the ala carte channel selection. I haven't had cable tv (nor dish nor direct) for YEARS because of prices that increase at an idiotic rate, zero choice, and an anti consumer marketing mindset. I'm not going to pay for 300 channels of nothing to watch. Price should be no more than .50 cents per channel (.25 cents per channel would bring me back to cable INSTANTLY) and let me pick WHATEVER I want. Personally I could live with a dozen channels and an $8 a month cable bill that I would be HAPPY to pay.

What makes more sense to you, cable companies? $8 a month from a customer, or ZERO from a non-customer?

"Young lady, in this house we obey the laws of thermodynamics!" -- Homer Simpson

Most Popular Articles5 Cases for iPhone 7 and 7 iPhone Plus
September 18, 2016, 10:08 AM
Automaker Porsche may expand range of Panamera Coupe design.
September 18, 2016, 11:00 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM
No More Turtlenecks - Try Snakables
September 19, 2016, 7:44 AM
ADHD Diagnosis and Treatment in Children: Problem or Paranoia?
September 19, 2016, 5:30 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki