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AT&T: Buying DirecTV Will Lower Our Costs, but Not Yours
by Karl Bode 09:10AM Wednesday Jun 25 2014
Though AT&T states that the increased programming negotiations leverage they'll gain from acquiring DirecTV should generate 20% cost savings for the company, AT&T wasn't able to promise lawmakers that consumers would see any price reductions if the deal is allowed to continue. When asked if any of these cost savings would be passed on to consumers, AT&T CEO Randall Stephenson said no, in a convoluted fashion. Stephenson did state prices might increase more slowly, but couldn't get specific on that front, either:
quote:
"Any projection as to how much mitigation, how much of a reduction in the rate of increase?" Blumenthal asked.

"As I mentioned, it's a bit episodic. It's a bit specific," said Stephenson.

"I think a lot of consumers would find that answer unsatisfying," said Blumenthal.

"We believe one would have to believe in the market, and market pressures, and that market pressures will drive down margins," said Stephenson. "Cost savings will find their ways into prices."
Keep in mind this is a company that's being boldly misleading in terms of promises of broadband expansion if the deal is allowed to go through, and had no problem whatsoever making any number of misleading claims in their failed effort to acquire T-Mobile. That they're not willing to even pretend that cost savings for them will be passed on to consumers tells you all you need to know about what direction AT&T's TV services (and their endless new, nickel and dime fees) are headed.

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IPPlanMan
Holy Cable Modem Batman

join:2000-09-20
Washington, DC
kudos:1

3 recommendations

Constant theme...

AT&T has never done anything to save you money. Period.

Transmaster
Don't Blame Me I Voted For Bill and Opus

join:2001-06-20
Cheyenne, WY

1 recommendation

Re: Constant theme...

Lawmakers had to use Google translate to understand what AT&T answered because that person just rolled up on one cheek to give it.

AMDUSER
Premium
join:2003-05-28
Earth,
kudos:1
Reviews:
·AT&T U-Verse
·Time Warner Cable

2 recommendations

Re: Constant theme...

I'm sure this meter was going off as well...
Kearnstd
Space Elf
Premium
join:2002-01-22
Mullica Hill, NJ
kudos:1

Re: Constant theme...

And when that got pinned out this warning light came on...



Could not help but to think of that scene in Airplane II.
--
Filan - Aurin Spellslinger - Pago - Team Legacy

chip89
Premium
join:2012-07-05
Independence, OH
Reviews:
·Cox HSI
The BS O meter is all the way to 10!

n2jtx

join:2001-01-13
Glen Head, NY

3 recommendations

This article again compounds my hope that I never have to do business with AT&T. They should have kept the name SBC because they have thoroughly trashed the AT&T moniker. There are times I wonder why AT&T is not an organized crime syndicate except for the fact they write the laws that give them carte blanche to act in ways that would otherwise be illegal or immoral .
--
I support the right to keep and arm bears.
JAQUEBAUER

join:2007-09-20
Fort Lauderdale, FL

Re: Constant theme...

I wholeheartedly agree. Its a blessing they did not keep the "Bell" name as well, as it would have diminished all the good things that Alexander Graham Bell stood for. ATT is a company without a soul, whose only existence is to enrich the fortunes of its inhuman executives and board. I bear witness to the destruction of the Bell System from the early 70's to current day, from the perspective of being in a family of "Bell Heads." Yes, the federal government had its slimy hands in the destruction of this once great American Institution, but it was the Elitist Ivy League MBA's that swung the executioners sword. Lets hope the do nothing Congress blocks the buyout of DirecTV, and saves us the pennies we will need to survive after Obama has brought our nation to its knees in desperation.

n2jtx

join:2001-01-13
Glen Head, NY

Re: Constant theme...

I was an admirer of the old "Ma Bell". From all the innovation at Bell Labs to the equipment made by Western Electric. Yes there were issues such as the prohibition on private equipment or private wiring but they were already being dealt with through regulation. I remember when I was in college how easy it was to go to the local Phone Center store and get service, a rental phone and directory in one stop. Then they broke up AT&T before my last year at school and I had to go one place to get service. I had to buy a phone at another store and nobody seemed to have a directory available. The irony is that we went from a highly regulated monopoly to a largely deregulated duopoly.
--
I support the right to keep and arm bears.

Jaquobauer

@65.13.44.x
I wholeheartedly agree. Its a blessing they did not keep the "Bell" name as well, as it would have diminished all the good things that Alexander Graham Bell stood for. ATT is a company without a soul, whose only existence is to enrich the fortunes of its inhuman executives and board. I bear witness to the destruction of the Bell System from the early 70's to current day, from the perspective of being in a family of "Bell Heads." Yes, the federal government had its slimy hands in the destruction of this once great American Institution, but it was the Elitist Ivy League MBA's that swung the executioners sword. Lets hope the do nothing Congress blocks the buyout of DirecTV, and saves us the pennies we will need to survive after Obama has brought our nation to its knees in desperation.
Zoder

join:2002-04-16
Miami, FL

1 recommendation

Previous Lies

When they were going around the states getting the franchise laws changed for U-Verse, they told lawmakers it would bring down tv prices. Of course those lower prices never showed up.
biochemistry
Premium
join:2003-05-09
92361

Re: Previous Lies

It decreased the percent cost compared to income for the executives who were buying 100 inch oled TVs. Ie, bonuses for the execs.
--
isheavenforreal.com

Kilroy
Premium,MVM
join:2002-11-21
Saint Paul, MN

2 recommendations

Meanwhile back in the real world.

said by AT&T CEO Randall Stephenson :
"We believe one would have to believe in the market, and market pressures, and that market pressures will drive down margins," said Stephenson. "Cost savings will find their ways into prices."
In the real world, that most of us live in, we all know that any cost savings will be used to keep shareholders happy.

said by History of the World - Part 1 :
Shall we continue to build palace after palace for the rich? Or shall we aspire to a more noble purpose and build decent housing for the poor?
--
"Progress isn't made by early risers. It's made by lazy men trying to find easier ways to do something." - Robert A. Heinlein
ualdayan

join:2004-07-17
Antioch, TN

2 recommendations

Re: Meanwhile back in the real world.

Actually the worst thing about what he said is that he just pointed out that 'market pressures' will be the only thing to drive down price - YET he's wanting to eliminate a competitor. That's all but promising prices will be higher than they otherwise would be rather than lower if the merger is allowed, because merging is eliminating market pressures.
Kearnstd
Space Elf
Premium
join:2002-01-22
Mullica Hill, NJ
kudos:1

Re: Meanwhile back in the real world.

what he really means is his bigger company can pressure the content owners prices down. Nothing about prices for the consumer which will go up to help recoup the costs of this buyout.
--
Filan - Aurin Spellslinger - Pago - Team Legacy

capecoddah

join:2005-03-18
Yarmouth Port, MA
kudos:1

Ernestine says:

We don't care, we don't have to, we're the phone company,
nitin00

join:2010-01-17
Stockton, CA

I don't even wanna browse the front page anymore on this website.

I must agree that corporations are in for profit and it would be a lie otherwise, as they all have to do so to stay in business.

But is there an article on this website that is not so biased and not so one sided? Everytime I come here for some news all I get is bashing of corporations, whether its comcast, at&t, verizon.

You all really think that if comcast/time warner merger goes through that AT&T is going to just sit on the sidelines?

It's for FCC to hold companies accountable for not going through with what's promised or block any loopholes.

I guess I will just stick to the support forums from now on.

So you want a guy to promise cost saving already when the deal isn't even approved yet?

ptrowski
Got Helix?
Premium
join:2005-03-14
Putnam, CT
kudos:4

3 recommendations

Re: I don't even wanna browse the front page anymore on this website.

No, it's just most of us have seen this same argument used time and time again and NOTHING materializes. We will create more jobs! Consumers will have more choice and flexibility! Hey, the United Society of Pork Rind Consumers and Balloon Ties backs AT&T! Been there, seen that. It goes with just about any major acquisition. AT&T gets more heat now after the utter shite show that was their attempt at buying T-Mobile. We see the exact same thing happening here.
--
"So, Lone Starr, now you see that evil will always triumph because good is dumb."

Have you been touched by his noodly appendage? »www.venganza.org

pizmo pete

join:2007-10-24
Portland, CT
you are kidding right? You really believe they don't work together to compete to the top in raising, not lowering prices....if true competition existed the race would be to the bottom. Worked in electronics ...Expensive tv's are cheap now. How come it doesn't work in CARS, Cell phones, and cable Television always going up..up up!! Oh yeah don't forget gasoline....FAIR my ass..
lonewolf_Cub

join:2014-06-25
Madison, WI

Avading the Law

Mergers=Legal Monopolies

pizmo pete

join:2007-10-24
Portland, CT

Evil Empire

Click for full size
Lord Stevenson fires up the death star...more mind tricks to sway the masses..fools we are to believe these lies..he means to destroy us with our desire for high priced recycled garbage TV...