AT&T blasts cable mergers, says cable companies should compete instead

AT&T, which just completed a $48.5 billion purchase of rival DirecTV, is now really worried that cable companies are merging too often and not competing against each other. Cable companies are coordinating and could end up acting as "a single national cable company," AT&T claimed. AT&T submitted a filing to the Federal Communications Commission Oct 13, explaining its views on Charter's proposed acquisition of Time Warner Cable (TWC) and Bright House Networks. AT&T started the letter by saying that it doesn't oppose the merger and then spent a few pages arguing that cable companies should compete against each other instead of merging.

AT&T's views here are strikingly similar to those of FCC Chairman Tom Wheeler, who has urged cable companies to compete against each other and played a key role in blocking Comcast's proposed takeover of TWC. But AT&T just wants cable companies -- those using coaxial cable -- to compete against each other. A traditional telecommunication company buying the nation's biggest satellite TV operator, despite already offering a pay-TV service of its own, was just fine, AT&T said. AT&T urged the FCC to "review the [Charter/TWC] transaction carefully and consider the impact of cable consolidation and coordination on emerging competition."