How Will The AT&T/DirecTV Merger Impact You?


It’s May and we’re in the thick of wedding season. Now the latest news is that more technology companies are getting married. It all started with Comcast and Time Warner.

And now DirecTV is engaged to AT&T. The dowry in this deal? $49 billion dollars. That’s even more money than Comcast is paying for Time Warner!

The reality is that DirecTV had become a 98-pound weakling offering service in the declining industry of traditional pay TV. We’re talking about a company that was so innovative when it launched some 20 years ago. But now that we’re getting video content how, where, and when we wish, DirecTV seems old hat. They don’t even have any meaningful phone or Internet service!

AT&T, meanwhile, has not been hugely successful with their U-verse pay TV product. So by buying DirecTV, AT&T suddenly becomes a powerhouse in pay TV.

Here’s the impact AT&T’s acquisition of DirecTV will have on you

If you are in an AT&T service territory, this new marriage means you will have the potential choice of a bulked up AT&T with a full suite of services: pay TV, cellphone, Internet, and home phone (if you still want one.)

So this deal is more defensive, where the Comcast deal is offensive to the free market. In fact, as far as Comcast goes, there’s not a single thing in that deal that helps America; it’s entirely harmful to the free market. It’s the kind of disaster that can only come out of an environment of crony capitalism.

For most of us, we’ll benefit when a third competitor comes into play for Internet.

I think back through the wilderness of the first 13 years of cell service in the United States. Most people didn’t have a cellphone because the industry was a shared monopoly and they kept fares unbelievably high. Then when a third competitor came in, the entire landscape changed.

The same thing will happen when we get third competitor for Internet. Comcast may have the ability to stifle competition for now, but their day will come too.

In the meantime, if you’re with Comcast, look at the phone company alternative. Look at who you can use other than Comcast to create some minimal competition in your life for your wallet.


AT&T offers discount cell service

Meanwhile, AT&T has a new discount brand of cell service now that they’ve bought Cricket. The pricing will start at $35 a month and go up to $55 a month depending on how much data you use. This move will allow AT&T to compete with the discounters.

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