AT&T CEO: Prices will not rise for consumers

The proposed merger of wireless giant AT&T and media powerhouse Time Warner isn’t about raising prices for consumers, but lowering them, AT&T’s CEO said. Noting a new DirecTV package of 100 channels priced at $35 monthly aimed at cord cutters will bow in Nov, “this is a way to drive down prices,” AT&T CEO Randall Stephenson said.

AT&T looks to take on cable as a major competitor, both with its DirecTV subsidiary, and having Time Warner (CNN, HBO, Warner Bros. studio) under the corporate umbrella. “This deal was about how can we change the game in this ecosystem,” Stephenson said. “If there was ever an environment begging for a change, this is it.” He cited 20 million people who have cut the cord from cable TV. ”How do you begin to access that segment of the market?” he asked. Looking toward the future, Stephenson waxed on about the possibilities of the next stage of mobile delivery from super-fast 5G networks, which he said would begin deployment from AT&T in 2018. In a joint talk with Time Warner CEO Jeff Bewkes, the two said TW products will not be offered as exclusives to AT&T customers.