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Subject To Certain Conditions, The FCC Sees the Merger of AT&T and DirecTV in the Public's Interest

Jul 24, 2015 08:59 PM EDT | By Jean-Claude Arnobit

After granting its approval, the Federal Communications Commission (FCC) sees the merger of AT&T and DirecTV, subject to certain conditions, is in the public's interest, according to the FCC's press release.

The FCC came to its conclusion after a careful and thorough review of the applicants' records, which includes "extensive economic analysis and documentary data, and comments from interested parties."

The deal comes with "certain conditions" that the FCC deems necessary.

"The conditions imposed by the Commission address the potential harms presented by the combination of AT&T, one of the nation's largest telephone and Internet service providers, and DIRECTV, the nation's largest satellite video provider," the FCC said in the press release. "The conditions also ensure that the benefits of the merger will be realized."

The FCC requires AT&T-DirecTV to provide access for the high-speed, fiber optic broad broadband Internet service to "12.5 million customer locations" and to "E-rate eligible schools and libraries." It also requires AT&T-DirecTV to offer broadband service to "low-income consumers at discounted rates.

The FCC prohibits AT&T-DirecTV to use discriminatory practices to disadvantage its online video distribution services. It will also review the merged company's Internet interconnection agreements.

The conditions will remain in effect for four years.

 Earlier, the U.S. Department of Justice gave its approval of the merger, finding  no "significant risk to competition."

Reuters reports that the deal, which is worth $48.5 billion, gives DirecTV the broadband product it lacks and AT&T access to new avenues of growth beyond the maturing wireless service.

The report adds that AT&T hopes to tap into DirecTV's business, as the U.S. market for wireless service reaches saturation.

In a statement issued by AT&T, Randall Stephenson, chairman and CEO of AT&T, said that the combination is all about "giving customers more choices."

"We'll now be able to meet consumers' future entertainment preferences, whether they want traditional TV service with premier programming, their favorite content on a mobile device, or video streamed over the Internet to any screen," he said. "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."

The AT&T-DirecTV merger makes them the largest pay-TV company, according to Reuters.

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