According to AT&T’s filing with the SEC, if DirecTV doesn’t renew “NFL Sunday Ticket” then AT&T may choose “not to consummate the Merger.” DirecTV’s exclusive rights to carry out-of-network pro football games on TV expires at the end of the forthcoming NFL season.
But a bigger AT&T will likely come with both pros and cons for customers. With DirecTV’s satellites able to reach rural areas, AT&T would no longer face geographical limits in its ability to sell TV. The merger with DirecTV would triple AT&T’s cable and TV customer base, providing service to more than 30 million people, adding to the company’s wireless subscriber base of about 100 million. Bundled deals would become available as soon as the deal closes. So-called quad-play bundles have been a prominent feature of recent cable deals, allowing customers to sign up for wireless, cable, landline telephone and Internet service in one package.
Massive cable deals do tend to eventually drive prices higher and reduce options for customers down the road. In an effort to satisfy regulators, AT&T says it will lock in the status quo for both customers for the first three years. During that time, AT&T will continue to offer standalone broadband pricing for customers who don’t want satellite TV — and standalone DirecTV pricing for those who don’t want wireless or broadband service.
Verizon, by contrast, has been criticized for forcing its DSL Internet customers to bundle their service with a landline telephone.
sources: CNN Money, USA Today