FCC officials are reportedly likely to recommend the approval of incumbent AT&T’s planned US$48.5bn takeover of DTH provider DirecTV.
While the FCC opposed Comcast’s now-abandoned purchase of Time Warner Cable (TWC), the officials believe an…
FCC officials are reportedly likely to recommend the approval of incumbent AT&T’s planned US$48.5bn takeover of DTH provider DirecTV.
While the FCC opposed Comcast’s now-abandoned purchase of Time Warner Cable (TWC), the officials believe an AT&T-DirectTV deal would boost competition as well as the rollout of broadband in rural areas, the Wall Street Journal reported.
Concessions to be made by AT&T to secure approval have not yet been finalised, the report stated. However, the merged entity may be required to extend broadband access in rural areas, grant price guarantees to broadband-only customers, and pledge to treat online video providers fairly.
The Department of Justice (DoJ), which is also reviewing the deal, has not yet raised any significant concerns either, the report stated.
Despite being a sizeable deal, the AT&T-DirecTV merger has so far flown under the regulatory radar as Comcast’s TWC buy, agreed at a similar time, proved more contentious.
However, following Comcast’s decision last week to walk away from the deal after the FCC and DoJ told it they had serious concerns about its likely impact on consumers, the AT&T-DirectTV deal is back in focus.
AT&T’s acquisition of DirecTV would significantly boost its pay-TV subscriber base in the US, taking it from a base of five million to 26 million, and gives it a business in Latin America with the potential to grow.
Synergies created by the merger will also allow AT&T to expand its broadband network to 15 million customer locations over the next four years, primarily in rural areas.
