After the Comcast, Time Warner Cable deal did not happen, the focus now shifts to the AT&T, DirecTV deal before regulators. The New York Times, on May 5 asks whether this deal will win approval?
Industry analyst Jeff Kagan offers comment.
“These are two completely different deals and I believe we will see two completely different regulator decisions.” Says Telecom Analyst Jeff Kagan.
“I believe the AT&T, DirecTV merger will easily and quickly win approval simply because there are no industry or customer concerns.” Says Wireless Analyst Kagan.
“Regulators must judge each deal on it’s own merits. The two companies are only concerned with whether this will be good for them. Regulators have to be concerned with the benefits or disadvantages to the industry in general, the competitive playing field, and to the customer or end user.” Says Analyst Kagan.
“Merging the number one and two competitors in the cable television space would help the two companies, but would not be good for the marketplace at this time. Perhaps in several years, if Time Warner Cable is still available, when the marketplace has competition in all markets, then it would more likely be approved. Not yet however because there would be damage to the marketplace, according to regulators.” Says Kagan.
“The AT&T, DirecTV deal poses no marketplace threat. In the TV space, neither is number one or number two. They are two smaller competitors wanting to grow and to better compete with the cable television giants like Comcast and Time Warner Cable.” Says Kagan.
“Plus AT&T and DirecTV are completely different companies. This deal will not make DirecTV any larger. AT&T sees this merger as a way to continue growth to keep investors happy by letting them compete in a new space. AT&T is not currently a satellite TV competitor. This is the same reason AT&T is expanding in other areas as well.” Says Kagan.
“These are just some of the reasons why I think this AT&T, DirecTV merger will win quick approval. This merger poses no industry threat. So in a case like this, regulators have always approved similar deals in the past. And I fully expect they will approve this deal as well.” Says Kagan.
About Jeff Kagan
Jeff Kagan is a wireless analyst, telecom industry analyst, technology industry analyst, consultant, columnist, author, keynote speaker and futurist.
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