AT&T is reportedly expected to accept new FCC rules on net neutrality to win approval of its planned US$48.5bn acquisition of DirecTV. Analysts predict that the FCC and Department of Justice will approve the deal, subject to conditions, as soon as…
AT&T is reportedly expected to accept new FCC rules on net neutrality to win approval of its planned US$48.5bn acquisition of DirecTV.
Analysts predict that the FCC and Department of Justice will approve the deal, subject to conditions, as soon as mid-month.
Such a move, reported by the Washington Post, would be an about-turn for AT&T, which was among groups to file lawsuits against the FCC for its controversial new net neutrality rules.
According to the report, AT&T would agree not to throttle or block internet content, or to take part in paid prioritisation.
It is unclear how long these conditions would remain in place, the report stated.
Gene Kimmelman, president and CEO of public interest group Public Knowledge, said he doubted the deal would be blocked outright, provided AT&T were willing to live with the conditions. The reported conditions are generally in line with what he has heard, he said, adding that his group would continue to raise concerns about the deal until it understands what will be done to address them.
Last month, Dish Network, Cogent Communications and consumer advocacy groups met with FCC officials to discuss conditions for the AT&T-DirecTV merger. They set out their preferred conditions, which include requiring AT&T to offer customers standalone broadband access at reasonable speeds and prices, and not forcing them to buy bundled packages.
They have expressed concerns that the merger will give AT&T greater incentive to favour its own video services for the benefit of bundle customers, and also to thwart competing OTT services.
Earlier this week, the Competitive Communications Associate (COMPTEL) filed an ex parte notice with the FCC arguing that the merged AT&T and DirecTV would be large enough to negotiate significantly lower rates with programmers for content, leading to higher fees for smaller operators.
Brazilian plans
Meanwhile, AT&T executives are set to visit Brazil the week after next to meet with high-level officials, local publication Teletime reported. The agenda will reportedly include both the planned merger with DirecTV, which controls Sky in Brazil, and AT&T’s potential purchase of 2.5 GHz and 700 MHz spectrum in an auction later this year. The US telco could also show interest in buying a Brazilian operator, the report stated.
