AT&T has completed its US$49 billion acquisition of DirecTV following approval of the deal by the FCC.
The acquisition makes AT&T the largest pay TV provider globally, providing services to over 26 million customers in the US and 19 million in Latin America and the Caribbean. The group also has over 132 million mobile customers in the US and Mexico.
The group provides LTE mobile coverage to 310 million homes in the US. It has 16 million high-speed broadband customers.
AT&T has agreed a number of conditions set by the FCC to secure approval of the deal, including that it will not favour its own online video programming services, although it will be able to continue to offer discounted integrated bundles of its video and broadband services.
The telco must also submit any new interconnection agreements with peering networks and on-net customers to the FCC for approval.
AT&T has named John Stankey as CEO of AT&T’s entertainment and internet services, responsible for the combined group’s home services operations. He will report to CEO Randall Stephenson.
DirecTV president, chairman and CEO Mike White is to retire from the business.
“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,” Stephenson said. “We’re now a fundamentally different company with a diversified set of capabilities and businesses that set us apart from the competition.”