Cogent joins Netflix in demanding conditions for A
Post# of 17650
Jason Aycock, SA News Editor
•Cogent Communications (NASDAQ:CCOI) joined Netflix today in calling for conditions on the proposed merger of AT&T (NYSE:T) and DirecTV (NASDAQTV).
•Data carriers like Cogent (along with firms like Netflix) are focused on interchange issues, the fees that a broadband behemoth could collect for accepting Internet traffic -- and their opposition, or the nature of it, could be good news for the deal, says industry analyst Craig Moffett.
•The reason? The companies could be kingmakers by urging concessions, he says: They helped sink the Comcast-TWC deal, and now with AT&T/DirecTV, “two of the most ardent opponents are tacitly blessing the idea of the merger as long as there are appropriate conditions.”
•The two say that a combined AT&T/DirecTV with no restrictions will have a bigger incentive to stymie streaming entertainment.
seeking alpha