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Industry Analyst Jeff Kagan on AT&T, DirecTV Making Case for Merger with FCC and SEC(June 12, 2014)
Atlanta, GA (PRWEB) June 12, 2014
AT&T is making their case about the positive things their DirecTV merger will bring, according to this AT&T Executive Summary Public Interest Statement, filed on June 11 with the FCC and SEC.
Industry analyst Jeff Kagan offers comment.
I have had a chance to review this statement and AT&T makes a strong case for their merger with DirecTV. There are obviously benefits to the companies, but they have outlined a number of consumer benefits which are an important piece of this puzzle. Says Principal analyst Jeff Kagan.
AT&T says it has broadband facilities in most of its 22 state wire line region. However they can only provide video service and a broadband, video bundle to homes where they have deployed fiber to the node (FTTN) or fiber to the premises (FTTP).
They say while they plan to cover roughly 33 million customer locations with this technology, their geographic region will still cover less than one-quarter of TV households in the United States.
AT&T says outside of their U-verse video footprint, they cannot offer integrated bundles of broadband and video.
As a result of this limited video footprint, AT&T is far smaller than Comcast and Time Warner Cable, which are its principal competitors.
They say a combined AT&T and DirecTV will be able to offer new and better service bundles, creating a stronger competitor to the traditional cable television companies and their bundles.
You have to admit, they make a strong case. Bottom line we want to see companies continue to thrive, innovate, grow and compete. This is where all good things for consumers and investors come. This benefits both the companies and the consumers in a competitive marketplace. Says Technology analyst Kagan.
In fact, we are seeing several large mergers proposed and they all represent the same thing progress. Continued change and innovation and growth in the industry as different sectors merge. Thats a good thing as long as we have competition. And as different mergers occur, new competitors join the battle for customers. Says Tech analyst Kagan.
As an example, currently there is not enough competition for television. Most customers dont have a choice. Most customers can only choose their cable television company like Comcast, Time Warner Cable or Cox. Some customers do have access to competitors like AT&T U-verse, Verizon FiOS and CenturyLink Prism. However even those lucky consumers dont have much choice. Not enough for a healthy and competitive marketplace. Says wireless analyst Kagan.
We must encourage more competors and that means more mergers so we can have more competitors offering more services to more customers. We should let the marketplace continue to change and grow. A marketplace with more competitors will lead to more innovation and better customer care. Says Kagan.
We must always take care and be careful about approving the right mergers. Not every merger helps the marketplace. However for the mergers that will enhance the competitive landscape, mergers should be encouraged. Says Kagan.
So far, from what I can see about this proposed AT&T, DirecTV merger, there is no reason to block and many reasons to approve. Stay tuned. Says Kagan.
About Jeff Kagan
Jeff Kagan is an industry analyst, consultant, columnist, author, speaker and futurist. He shares his opinion in many ways over 25 years. Helping to understand our changing world, technology, industry and competition.
He is regularly quoted by the media. He offers comment to reporters and journalists on wireless, telecom, Internet, cable television, IPTV and other tech news stories.
Kagan is known as a Technology Analyst, Tech Analyst, Wireless Analyst, Smartphone Analyst, Telecom Analyst, Telecom Industry Analyst and Principal Analyst.
Reporters: Jeff Kagan sends comments by email to reporters and the media. If you would like to be added to this email list please send request by email.
Companies and Clients: Contact Jeff Kagan to discuss briefing him or becoming a consulting client.
Contact: Jeff Kagan by email at jeff(at)jeffKAGAN(dot)com or by phone at 770-579-5810.
Visit his website: at jeffKAGAN.com to learn more.
Full Disclosure: Jeff Kagan is an independent industry analyst. He offers comment to the media on breaking news, announcements, technologies and the changing marketplace. He also writes columns and press releases offering comment, and is an author and speaker. He also works on a consulting basis sharing his opinion.
Twitter: Follow him at @jeffkagan
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