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25 Feb

AT&T Updates Senators That Their Merger With Time Warner Will Benefit Customers

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AT&T Time Warner Merger

It is known that AT&T had announced their plans to acquire Time Warner Inc. a few months ago. Time Warner is actually the parent company of a number of popular cable networks in the country, and this is why, many telecom companies and experts greeted AT&T’s merger plans with great skepticism right from the start. However, reports indicate that AT&T is continuing with their efforts to buy Time Warner, even though the telecom company has sidestepped several regulatory scrutinies by not seeking the approval of FCC for the proposed merger.

Lawmakers have been continually asking the fastest internet provider on how this merger will benefit anyone other than the shareholders of both the parties. AT&T responded to this query by stating that this potential merger will affect neither the prices nor the competition, because they are a small-time player in pay-TV business. In addition to that, the officials at AT&T also pointed out that the viewership number of Time Warner has significantly decreased over the last few years.

The CEO of AT&T, Randall Stephenson claimed that AT&T’s merger with Time Warner will “disrupt the entrenched pay-TV models,” and it will give more option to customers. In addition to that, he also added that the merger with speed up the development of AT&T’s 5G wireless networks.

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A group of senators wrote a letter to AT&T a few weeks ago, asking AT&T to explain how their merger with Time Warner will be in the public interest. “We remain concerned about how a deal of this size could affect consumers and competition,” the letter stated. Furthermore, the senators also said that, “AT&T is already the world’s largest pay TV provider and the largest telecommunications company. Combining it with one of the world’s largest producers of content gives AT&T-Time Warner both the incentive and ability to use its platform to harm competitors, and as a result, consumers.”

“The combined company could promote its own programming above that of other content companies’ or restrict other distributors’ ability to offer its highly-desired content. As a result, the merger could raise prices on consumers, reduce access to independent programming; and harm small businesses, content distributors, and innovative business models,” they added.

AT&T responded to this merger recently and they added that their merger with Time Warner would give customers what they want. AT&T has been offering the best internet, phone, and TV services to their customers for a long time, and if this merger with Time Warner comes into fruition, then AT&T might be able to dominate the market with much more offers and deals.

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