AT&T Inc’s US$49 billion acquisition of satellite broadcaster DirecTV Inc won final regulatory approval on Friday, clearing the way for a new powerhouse in broadband and video services.
The US Federal Communications Commission (FCC) said it approved the plan, announced last year, with conditions drawn up to ensure competition and more deployment of high-speed Internet connections.
Earlier this week, FCC Chairman Tom Wheeler said he had circulated an order approving the mega-deal and the US Department of Justice said it would not block the merger.
The deal merges AT&T, which offers Internet and TV in parts of the US and is one of the biggest mobile carriers, with DirecTV’s more than 20 million subscribers.
That creates the largest pay TV provider in the US, but also opens up possibilities for other online services and packages.
“This transaction allows us to significantly expand our high-speed Internet service to reach millions more households, which is a perfect complement to our coast-to-coast TV and mobile coverage,” AT&T chairman and chief executive Randall Stephenson said, when announcing the completion of the deal.
AT&T said it has become “the largest pay TV provider in the US and the world,” with 26 million US customers and 19 million in Latin America, including subscribers of Sky Mexico, in which DirecTV holds a stake.
The news comes three months after regulators blocked a massive merger plan of cable giants Comcast Corp and Time Warner Cable Inc, saying it would concentrate too much market power in the market for high-speed Internet.
However, merging AT&T and DirecTV could help competition, because the telecom giant and satellite broadcaster do not have the same geographical territories as the traditional cable firms.
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