<<

Enter Search Terms

Opposition to the AT&T and DirecTV merger continues in spite of facts and lower costs Thursday, July 24, 2014 10:50 AM by Connor Houston Texan Politicians Push Tax Increase On Sales

On May 18th, 2014, DirecTV entered final agreement with AT&T on its purchase. In June, the Texan Politicians Push Tax Increase On Internet Sales House Committee on the Judiciary, held a hearing on the merger, and on Wednesday July 16th, The Senate Committee on the Judiciary held a hearing on a merger between DirecTV and AT&T. Texan Politicians Push Tax Increase On Internet Sales Opposition to the merger has come from those who argue that it could create a monopoly in what they view as a consolidated TV and Internet Service market. The most marked opposition came from the American Cable Association, which spoke against the AT&T merger during the House Judiciary hearing on June 24, and the Writers Guild of America West who spoke out against the merger during a Senate Judiciary hearing on the same day. The American Cable Association argues that the merger would create a monopoly and cause prices of services to increase, while the Writers Guild of America West claims that programmers would see less money for their content after the merger. AT&T and DirecTV correctly responded to the claims of monopoly by pointing out they would be providing services to markets with no service at all, and that the merger does not reduce competition as the two companies compete in completely different markets.

AT&T and DirecTV assert that they must merge in order to survive the changing market and to provide better and cheaper services customers. During the House Judiciary hearing on the merger President, Chairman, and Chief Executive Officer of DirecTV, Michael White, testified that DirecTV can no longer offer the services its customers want without AT&T. He asserted that the market has changed and that customers want Internet and TV bundles that DirecTV alone cannot offer. White points out that, “today, 78% of basic cable subscribers take at least two products Texan Politicians Push Tax [predominantly video and broadband] and 42% take three [video, broadband, and telephone].” Increase On Internet Sales Statements from the CEO and President of AT&T, Randall Stephenson concurred with White, Opposition to the AT&T and pointing out that a combined AT&T and DirecTV would be able to provide bundled services that DirecTV merger continues in customers want but could not do so alone. Furthermore, while AT&T stated they have wired spite of facts and lower costs bundle services, it would not be profitable without the DirecTV merger and the entertainment Digital Liberty Executive packages it brings. Director, Katie McAuliffe Takes Action and Submits Neutrality Comments In addition to increased bundle opportunities, the merger would provide both companies the House of Representatives chance to expand their broadband services while being able to offer cheaper prices. Currently Votes to Abolish House Votes broadband Internet when paired with AT&T U-verse costs $14.95 for a 6Mbps broadband for a Internet Tax Free connection. The same connection costs $34.95 when paired with DirecTV. The merger would Digital Liberty Executive allow customers of DirecTV to receive the low cost broadband AT&T provides. Stephenson Director Katie McAuliffe claimed with the merger, “[that] being able to offer DirecTV’s video product on a nationwide basis Encourages Passing Permanent Internet Tax gives us the confidence to expand and enhance our high-speed broadband service to at least 15 Freedom million customer’s locations.” He later added, “This transaction will allow us to lower content costs Digital Liberty Executive Katie for AT&T video subscribers by 20% or more.” McAuliffe writes powerful Op- Ed in support of digital You can view the June 24th senate hearing: Here privacy US Supreme Court: Aereo Tags: Wireless Broadband Media May Cease to Exist While Broadcasters Everywhere Rejoice

On the Verge of Innovation: AT&T and DirecTV Merger Touchdown or Penalty? The Immediate Implications of the Redskins Trademark 0 Comments Digital Liberty Login Decision

Sort by Best Share Favorite Katie McAuliffe and Americans For Tax Reform Issue Letter in Support of Start the discussion… ECPA Reform

Be the first to comment.

Subscribe Add Disqus to your site

Digital Liberty Our Mission Issues Connect Digital Liberty Internet Regulation and Net Follow Us on Twitter 722 12th St. NW, 4th Floor Digital Liberty advocates for a Neutrality Washington, D.C. 20005 Like Us on consumer-driven market from heavy Tech and Telecom Taxation P: 202.785.0266 regulation or taxation of the Internet, Subscribe to Our Newsletter Wireless and Spectrum F: 202.785.0261 technology, telecommunications, video http://www.digitalliberty.net games, and media. We believe that free Media and Video Game Freedom [email protected] markets and consumer choice – not Privacy bureaucrats – should determine the American technology and media landscape.

Website Design and Development by Braynard Group, Inc