AT&T-Time Warner merger could be blessing in disguise for consumers

[Commentary] If federal authorities play this correctly, the AT&T-Time Warner merger actually could be beneficial for consumers.

What they should do is press the case for skinny bundles and a la carte channels.

Despite all the political posturing, I expect the deal ultimately to be approved. There’s not a lot of overlap in AT&T’s and Time Warner’s operations, so the most troublesome element is creation of a corporate behemoth of Monster Island proportions. To address that, the Justice Department and Federal Communications Commission almost certainly will impose a number of conditions to make the deal more palatable, including divestiture of some properties and commitments to play nice with other kids. Because a merged AT&T-Time Warner would cast such a long shadow over the telecom and media industries, a requirement that the company offer smaller, reasonably priced programming packages and break off popular channels on an a la carte basis could have a sweeping effect on other pay-TV players.

“It’s always the case that when one party does something that’s more pro-consumer, others will follow,” said John Bergmayer, senior counsel at the advocacy group Public Knowledge.