News Column

Details of the proposed AT&T and DirecTV merger

May 18, 2014

The Associated Press



Telecommunications giant AT&T is proposing a $48.5 billion merger with satellite TV provider DirecTV. If the deal goes through, here's what customers can expect:

WHAT CHANGES?

At the moment, nothing. The deal is subject to government approval in both the U.S. and Latin America. Until the transaction is approved, the companies will operate separately. AT&T and DirecTV expect to close the deal within 12 months.

WHAT CAN AT&T and DIRECTV CUSTOMERS EXPECT?

Customers of both companies will likely see more offers bundling DirecTV's 285 TV-channel service with AT&T wireless and Internet services. AT&T currently offers some plans that bundle DirecTV service, but customers get separate bills from the two companies.

Within a few years, AT&T says, consumers can expect to get more DirecTV content on their mobile devices, or even streamed into cars or airplanes.

Customers who only want broadband Internet service and get video through services like Netflix and Hulu, will be offered stand-alone broadband service at guaranteed prices for three years.

DirecTV customers can continue getting the service on a stand-alone basis at nationwide package prices for at least three years.

Within four years, AT&T would provide high-speed broadband to more than 15 million customers, mostly in rural areas. Customers will be able to buy broadband as a stand-along option or as part of a bundle with other AT&T services. With that expansion, AT&T says its broadband network would reach a total of 70 million customers.

AT&T says it will remain committed, for at least three years, to federal open internet protections established in 2010 despite recent court action striking down the so-called "net neutrality" provisions.

Source: AT&T, DirecTV


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Source: Associated Press


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