Wednesday, May 30, 2018

AT&T expects ruling on Time Warner merger on June 12

AT&T expects a ruling on June 12 in the suit lawsuit brought against AT&T and Time Warner by the U.S. Department of Justice. If the court rules in its favor, AT&T is ready to close on the merger. The company anticipates annualized cost synergies of $1.5 billion by the end of the third year after close.

Speaking at this week's Cowen Technology, Media and Telecom Conference,  John Stephens, senior vice president and chief financial officer of AT&T, also stated:

  • AT&T expects to expand its video offerings to better address each customer segment and grow its total video subscriber base.
  • This includes AT&T’s top-of-the-line services DIRECTV and U-verse and OTT service DIRECTV NOW. 
  • Following the close of the Time Warner deal, AT&T plans to introduce AT&T Watch, a skinny package without local programming or sports-only channels. 
  • By the end of the year, the company also expects to launch a premium streaming experience that will compete with traditional linear TV products for in-home use. The product will be app-based with a small device that connects to customers’ TVs and home broadband. 
  • Advertising is a significant part of the company’s video strategy and noted the vast ad inventory AT&T will have across its platforms following the Time Warner acquisition. 
  • The FirstNet nationwide public safety broadband network for America’s first responders is off to a strong start. AT&T expects FirstNet capital spending of $2 billion this year.
  • AT&T plans to reach 500 markets with 5G Evolution technology by the end of 2018. With 5G Evolution, the company is seeing speeds at two times of standard LTE in many areas.

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