From the $48.5 billion bid to acquire DirecTV to its plans to deploy fiber optic services (“GigaPower”) in the Triangle and a $500 million online video investment, AT&T is on a technology binge.

What’s going on?

NCSU Economist Dr. Michael Walden, who is widely published about all things tech and its impact on the economy, sees a variety of reasons in this exclusive WRAL TechWire conversation.

Checking in with Walden via email early today, WRAL TechWire asked Walden why AT&T has really stepped up its growth, broadband efforts and its network. Why is it doing so at such an aggressive pace?

WRAL TechWire Coverage of AT&T’s binge:

  • {a href=”blogpost-2″}}AT&T wants to buy DirecTV in $48.5 billion deal.
  • {a href=”blogpost-5″}}AT&T is bringing fiber to Triangle, other NC markets
  • {a href=”blogpost-7″}}AT&T invests in online video venture.

Walden, who recently wrote about the changes taking place in the cable industry as Comcast bids to buy Time Warner Cable, pointed out how AT&T’s announcement fits in with a growing trend.

“The stepped-up M and A (merger and acquisition) activity in the communications industry is being driven by two factors,” he writes.

“One is historic.

“New industries, such as the Internet/wireless/cellphone industry, typically see firms consolidate over time. For example, this happened in the 20th century railroad and auto manufacturing industries. Larger firms attempt to gain competitive advantage by acquiring smaller firms. Or, equally-sized firms see an advantage in pooling their resources and market shares. So it is logical to see firms like Comcast and Time-Warner as well as AT&T and Direct TV agree to a merger.”

But a key factor as well is how quickly technology continues to change.

“The second factor at work is rapidly changing technology,” he says. “How we receive service and content is being altered at a virtual break-neck pace in the communications industry.

“New methods and dramatic improvements on existing methods are occurring quickly. This creates a great deal of uncertainly among industry firms.

“One way to deal with this uncertainty is to become bigger as well as to have a presence in all aspects of the industry. Both, I think, are at work in the AT&T and Direct TV deal.”

A key question for users is: What does the deal mean for us?

Walden sees both an upside and downside.

“There are potential pluses and minuses for consumers. A potential plus is that larger firms can be more effective competitors and can have a greater ability to deliver new and better services to customers,” he explains.

“But a negative is that an industry dominated by a few large firms can set the stage for “captive markets” where prices are higher, service is poorer, and innovation is weak.”

So now the AT&T-DirecTV deal goes to review by regulators who are supposed to protect John and Jane Public.

“This is why we have the Federal Communications Commission and the US Justice Department look at large M&A activity,” Walden says.

“Their purpose is to weigh these potential pluses an minuses and decide what is in the best interest of the economy and consumers. The government can deny a merger or acquisition or the government can approve it with conditions. For example, in the case of the American Airlines/US Airways merger, the government required the new firm to give up some gates at certain airports in order to prevent a high level of dominance in those markets.”

It’s likely to be many many months before an AT&T-DirecTV deal wins approval. It might not. Remember AT&T’s bid to buy T-Mobile?

In the meantime, technology will continue to change as quickly as ever. So don’t expect the M&A express to slow down any time soon.