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Why You Can’t Expect AT&T & DIRECTV to Lower Your TV or Internet Bills

Why You Can’t Expect AT&T & DIRECTV to Lower Your TV or Internet Bills

Several publications, including the Washington Post have reported that AT&T promised the American people in a FCC filing that the merger it wants to take place with DIRECTV would actually allow them to offer lower prices for both video and Broadband service bundles. The Washington Post went on to ass that AT&T has stated this merger would help the market by adding “pressure on cable companies to also cut fees.”

For the average reader, this makes it seem like the AT&T/DIRECTV merger should lead to all consumers receiving monthly bills that are much lower than they currently are, regardless of who they purchase their video and internet services through.

Here is the problem with this assumption, what these publications are saying is nothing even close to what AT&T states in their FCC filing. This corporate behemoth ¬†actually states that the merger would enable them to video and broadband bundles that are more competitive. This would increase competition in the market place, thus putting pressure on its’ competitors to keep prices down in the future. The difference here is that your bills will not go down if the merger is approved, just that they will go up at a slower rate than they currently are. It needs to be stated here that AT&T has no intention whatsoever of reducing their rates, whether the merger is approved or not.

If AT&T/DIRECTV had actual plans to reduce their prices, this would have been laid out in detail in the FCC filings, and you had better believe that they would be making sure it was seen by every potential customer in existence. Not only would this be great PR, it would also likely garner the favor of the FCC and other fed agencies involved in the merger approval process.

AT&T wants the merger with DIRECTV to be approved so that they themselves can save money, thus increase their own profits and become more competitive in the cable/sat/broadband services market. They are not merging to save you money, but to in reality make themselves more of your hard earned dollars.




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