FCC Approves AT&T-DIRECTV Merger

WASHINGTON, D.C.: The Federal Communications Commission (FCC) has cleared the way for AT&T to acquire DIRECTV and merge the two companies into one combined entity.

The $49 billion transaction will create one of the largest multichannel video providers in the U.S.

As part of the merger, the combined AT&T-DIRECTV will be required to expand its deployment of high-speed, fiber optic broadband internet access service to 12.5 million customer locations as well as to E-rate eligible schools and libraries. In addition, AT&T-DIRECTV is not allowed to use discriminatory practices to disadvantage online video distribution services. The outfit will have to submit its internet interconnection agreements for FCC review. Finally, AT&T-DIRECTV will offer broadband services to low-income consumers at discounted rates.

A statement from the FCC said: "The Commission’s decision is based on a careful, thorough review of the record, which includes extensive economic analysis and documentary data from the applicants, as well as comments from interested parties. Based on this review, the Commission has determined that granting the application, subject to certain conditions, is in the public interest."