The Federal Communications Commission said Friday it has approved AT&T’s US$49 billion acquisition of DIRECTV, removing the companies’ biggest hurdle in their desire to merge and create one of the largest U.S. pay-TV providers.The approval -with conditions will allow AT&T to acquire DIRECTV and merge the two companies into one combined entity. An Order detailing the Commissions reasoning and the conditions will be issued shortly. Based on this review, the Commission has determined that granting the application, subject to certain conditions, is in the public interest. As part of the merger, 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 prohibited from using discriminatory practices to disadvantage online video distribution services and will submit its Internet interconnection agreements for Commission review. Finally, AT&T-DIRECTV will offer broadband services to low-income consumers at discounted rates.AT&T, the nation’s second largest wireless carrier that also provides pay-TV, landline broadband Internet and phone services, pursued DirecTV to expand its TV business nationally and to enhance its buying power versus TV networks that are demanding higher fees for their programs. DirecTV’s satellite TV service is available nationally and has about 20 million customers. Once the merger is complete, AT&T would serve about 26 million TV customers.
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