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AT&T/DirecTV: Epitome of Bellhead Ploy

November, 2015

While the industry narrative continues to push the illogical idea that AT&T is leading the pack internationally as a transformational player, the operator has seemed to be more concerned in remaining a copper service juggernaut. It appears to us that perhaps the most important, although not apparently stated reason for its acquisition of DirecTV, was to provide extra capacity for data transmission on its U-verse/DSL modems (to become more competitive with CATV providers) as the video services would now obviously be increasingly provided by satellite. One of the biggest ironies is that while incumbent providers have maintained their historical reluctance to move to new solutions offered by their equipment suppliers, they have no problem in overspending billions, if not tens of billions of dollars in purchasing companies to primarily, if not totally, bring in novel technology – only later ...

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