A PYMNTS Company

US: AT&T testimony promises post-merger benefits

 |  June 24, 2014

AT&T testified in Congress Tuesday to convince lawmakers its proposed acquisition of DirecTV will lead to lower prices, according to reports.

Congress’s House Judiciary Committee heard testimony from AT&T CEO Randall Stephenson that argued “the substantial cost savings and other synergies associated with the transaction will allow us to price all our services more competitively, which will drive cable and other competitors to lower their prices.”

AT&T is currently the second-largest wireless carrier and operates television and Internet services though U-verse; an acquisition of DirecTV will likely lead to TV, phone and Internet bundled servicing from AT&T, reports say.

Opponents of the deal argue AT&T will wipe out competition in several markets across the nation.

According to Public Knowledge senior staffer John Bergmayer, “the proposed merger would remove a pay TV competitor from many local TV markets – a direct competitive harm. Yet it offers only to do some limited price-matching for three years.”

Bergmayer, who heads the policy group, also testified at the hearing on Tuesday.

Full content: Bloomberg

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.