NEW YORK, N.Y. – 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 per cent of the country.