Report: AT&T to agree to concessions for DirecTV

Report: AT&T to agree to concessions for DirecTV deal


Jun 2 2015, 12:13 ET | About: AT&T Inc. (T) | By: Jason Aycock, SA News Editor


With a federal review now in its endgame, AT&T (T +0.4%) is ready to make concessions in order to seal its $49B deal for DirecTV (DTV +0.2%), The Washington Post reports.
Speculation has centered on whether AT&T would embrace the FCC's new net neutrality rules regardless of the outcome of its pending litigation -- and the company appears ready to do so in several areas to get the deal done.
Along with offering stand-alone broadband plans that might encourage cord-cutting, AT&T would honor a ban on blocking and throttling (slowing down) sites, as well as agree to refrain from "paid prioritization" -- where companies pay Internet providers to get into a "fast lane."
Several details are unclear, though, including how long AT&T would need to abide by the commitments (earlier reports suggested several years), or what its broadband-only plans would have to look like in speed and price (opponents want 25 MBps for $30/month; AT&T's countered with 6 MBps for $35/month).
Also still a thorny issue: interconnection fees that have seen content firms wrestling with carriers over who's paying for heavy traffic from the likes of Netflix.
Previously: AT&T/DirecTV deal review still paused at FCC (May. 28 2015)
Seeking Alpha