Mobile content spurs AT&T's need for Time-Warner

The intrinsic value of AT&T's proposed $85 billion merger with Time Warner is based primarily on recent growth in mobile video consumption, especially among users under age 35.

The two companies envision new ways to get Time Warner's premium content to consumers through a highly distributed AT&T network that has 4,500 data centers nationwide.

Putting the content on cache servers in those data centers, where it will be closer to users, and then zipping that content over AT&T's upcoming 5G wireless network will enhance the user experience without threatening net neutrality policies, said Gartner analyst Akshay Sharma.

Also, the acquisition will likely allow customized, individualized advertising and pricing plans, and even a la carte pricing for individual TV shows or events like the World Series, he said.

To read this article in full or to leave a comment, please click here