AT&ts and Verizon announced today that they plan to merge their cable and broadband operations.
The move comes amid concerns that the merger of the two businesses will lead to an even larger merger of AT&Ts and Verizon, which could lead to greater consolidation of the cable and internet market in the United States.
AT&t and Verizon already operate a joint cable TV service, but AT&ters and Verizon also operate cable broadband services.
AT &ts chief executive officer Randall Stephenson says the merger is in line with AT&TS’ strategy to bring its two businesses together in a single business unit.
Stephenson says that if completed, the combined entity will have more than 3 million customers, making it one of the largest cable networks in the country.
“We’ve always been very clear that we’re in this together, and we’ve never stopped being in this,” he said.
“If we go forward, we want to be the company that brings our customers to the best possible value.
We believe in the power of a shared experience.”
AT& t’s cable network, however, is still being operated separately from its broadband network, which Stephenson says will be managed by the company.
“In our view, there’s a huge need for more shared experience and more flexibility,” Stephenson said.
AT shares fell as much as 1.5% in after-hours trading.
The news comes on the heels of AT & t filing for Chapter 11 bankruptcy protection earlier this month.
The company had been operating as a standalone company since 2014.
AT, which has $70 billion in debt, said it was not prepared to meet its $130 billion debt repayment.
The cable company has faced pressure to sell its cable networks and was also forced to sell off its satellite TV business.
AT t reported $13.8 billion in revenue for the first nine months of the year, down about 1% from a year earlier.
