AT&T says DirecTV deal could slow price hikes

AT&T says DirecTV deal could slow price hikes

Credit: Getty Images

PARK RIDGE, IL - JULY 25: An AT&T logo is displayed on an AT&T truck July 25, 2006 in Park Ridge, Illinois. AT&T announced July 25 that its profits climbed 81 percent with the growth in wireless communications and broadband service. (Photo by Tim Boyle/Getty Images)

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by ASSOCIATED PRESS

khou.com

Posted on June 24, 2014 at 6:15 PM

NEW YORK (AP) - AT&T's CEO has told Congress that his company's purchase of DirecTV will help slow increases in programming prices, but won't lead to a decrease in prices.
   
CEO Randall Stephenson spoke to two Congressional committees Tuesday to defend AT&T's $48.5 billion deal to buy the country's largest satellite TV broadcaster.
   
Stephenson was pressed on the cost issue at a hearing of the Senate Commission of the Judiciary. He said pay-TV costs are rising because of programming costs driven by TV studios and sports networks, and said he couldn't promise a decline in prices.
   
Public-interest groups say the deal will lead to less competition, since AT&T and DirecTV compete in providing pay-TV services to about 25 percent of the country.

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