The telecom regulator could still put conditions on the deal, including demanding that AT&T comply with the rules included in the agency’s net neutrality order. Dallas-based AT&T eventually abandoned the takeover attempt.
“We have been in to the FCC a number of times trying to ensure that any conditions it puts on this deal are meaningful and enforceable”, he says.
AT&T and DirecTV have moved a step closer to becoming the largest cable provider in the country.
Meanwhile, Reuters claims that not only is the DOJ nearing approval, but the FCC is also preparing to issue its approval of the deal in the coming week.
On June 29th, AT&T said it had had a talk with the FCC, wherein they discussed “the substantial, direct, and verifiable benefits that the AT&T/DIRECTV merger will deliver to tens of millions of consumers”.
Research analyst at Cowen, Colby Synesael, believes that the decision to upgrade is largely driven by the fact that the DirecTV transaction will prove to be accretive to the company’s free cash flow and earnings per share (EPS). DIRECTV is the largest satellite TV operator in the USA while AT&T has a strong fiber-based video network.
AT&T declined to comment on the Bloomberg report.
DirecTV posted solid results over the past few years in terms of subscriber growth and average revenue per user (ARPU), consistently outperforming most competitors.
DirecTV, without its own phone service or a competitive Internet offering, is under pressure to find a partner as more viewers go online for video and the pool of traditional pay-TV customers shrinks in the US.
According to sources, AT&T has been negotiating with FCC for several weeks now. Randall Stephenson, CEO of AT&T, said in a press release announcing the deal that it would “create a company able to offer new bundles and deliver content to consumers across multiple screens - mobile devices, TVs, laptops, cars and even airplanes”.
“At minimum, the Commission should strongly urge the powerful AT&T-DirecTV monolith to give serious consideration to fully and effetely serving local communities and address ZGS’ longstanding carriage request”, he wrote.
