DIRECTV Releases Latest SEC Filing

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dfergie

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Excellent catch.

It would appear that the following details are most noteworthy:

1. Can you provide any additional detail around your cost synergies?
...It is anticipated that at least 40% of these total synergies will be realized by year two after closing.
...Programming cost reductions are the most significant part of the expected cost synergies. At this time, AT&T’s U-verse content costs represent approximately 60% of its subscriber video revenues. With the scale this transaction provides, we estimate AT&T’s U-verse content costs after the completion of the transaction will be reduced by approximately 20% or more as compared with our forecasted standalone content costs.

[I wonder if this content cost reduction is because DirecTV had already negotiated lower carrier fees or because AT&T expects future savings from re-negotiating U-verse-based content?]

2. What incremental bundling opportunities exist with the combined companies?
U.S. consumers prefer to purchase pay TV service in a bundle with broadband connections and access video programming anywhere on any device, making mobile service a desirable part of the bundle. ...

[Fascinating admission, eh? Clearly, AT&T's paying attention to "cord shavers," not "cord cutters"]

The economics of this transaction will allow the combined company to upgrade 2 million additional locations to high speed broadband with Gigapower FTTP (fiber to the premise) and expand our high speed broadband footprint to an additional 13 million locations where AT&T will be able to offer a pay TV and high speed broadband bundle.

[Aha! Here's a real news-maker: AT&T Gigabit Internet is expanding. It will be interesting to find out who all is included in the "2 million additional locations."]

6. How competitive will the deployment of your fixed wireless broadband service be?

Today, many Americans in rural areas lack access to a high speed broadband service or have access to only one provider. With the cost synergies and increased revenue from this transaction, AT&T will expand its high speed broadband build to offer a competitive bundle of high speed fixed wireless broadband and satellite video service. We expect fixed wireless broadband to provide speeds of 10 -15 Mbps during peak periods with even higher maximum speeds during off peak times.

[If I'm reading this correctly, it would appear that while AT&T's push into rural with wireless was not unexpected, at least they're not initially planning to deploy via satellite Internet, but instead fixed wireless (e.g.: 4G/LTE). The only issue with this deployment strategy (at least from a consumer standpoint), of course, is that there'll likely be severely restricted data caps placed on these kinds of plans]
 
Also, the gigabit thing is not a new news item. They announced that before the merger. I love how company's re announce the promises they made before the merger announcement, and try to repackage it as something new in order to get approval.
 
Also, the gigabit thing is not a new news item. They announced that before the merger. I love how company's re announce the promises they made before the merger announcement, and try to repackage it as something new in order to get approval.

Nothing like milking it... Of course it really does not make a lot of sense... If the took the billions they were going to be spending for DIRECTV and spent it instead to do Fiber to the Premises over their whole footprint that would be a story.
 
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I read a like like this in an article but am not sure I understand right. Does the end of this like mean AT&T/DirecTV are offering a pro of the merger that they will keep nationwide packages at their current prices for 3 years from close of the merger?

Unparalleled Video: DIRECTV is the premier pay TV provider in the U.S. and Latin America. The merger will give millions of AT&T
customers who are outside of the U-Verse footprint access to a service bundle that includes DIRECTV’s best-in-class video programming. That
pay TV service will continue to be available at nationwide package prices, regardless of where a customer lives, for at least three years after
closing.
 
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