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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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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?


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