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AT&T: Buying DirecTV Will Lower Our Costs, but Not Yours

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.

Most recommended from 20 comments



IPPlanMan
Holy Cable Modem Batman
join:2000-09-20
Washington, DC

3 recommendations

IPPlanMan

Member

Constant theme...

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

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

2 recommendations

Kilroy

MVM

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?