AT&T and DirecTV defended their proposed merger before Congress this week, arguing the deal would force cable companies to decrease their payment rates.
Although the prospect of lower prices sounded promising, the claim quickly dissolved on Tuesday after the Congressional panel interrogated the companies' representatives, AT&T CEO Randall Stephenson and DirecTV CEO Michael White. Connecticut Senator Richard Blumenthal asked AT&T whether these savings would also apply to the customers. Stephenson replied that he could not commit "right here and right now" whether consumers would also benefit, the New York Times reported.
In response to additional questioning regarding the possibility television price hikes would slow after the merger, Stephenson gave no assurances but said he hoped that would be the case.
Although there were some legislators who oppose the merger, most were in favor and gave positive statements regarding the potential for reduced programming costs.
Georgia Rep. Hank Johnson, a Democrat involved in the House's antitrust subcommittee, explained the merger presented enough evidence regarding the benefits and then proposed that AT&T should install a superfast fiber optic service in Atlanta.
Congress is not responsible for reviewing the merger but might be able to influence the approval committee's decision that include the Federal Communications Commission (FCC) and the Justice Department. AT&T and DirecTV says the merger is the only way for both companies to compete with other broadband and pay-TV businesses.
"Bundles have largely replaced pure video. Video itself has combined with the Internet to satisfy customers' demands for more video on demand," White said, as quoted by the Wall Street Journal. "Our competitors' advertising highlights our lack of an Internet offering and their speed advantages."
