Tom Wheeler, chairman of the Federal Communications Commission and his fellow committee members issued an approval of AT&T merging with DirecTV on Tuesday with an O.K. from the Justice Department, as well, stating the wireless-satellite TV integration would not pose “any significant competition.”
Since the approval, the AT&T-DirecTV merger has potential to become America’s largest pay-TV company, according to Yahoo Finance.
In a landmark outcome for the companies, AT&T (as the second largest domestic wireless carrier) and DirecTV (the largest satellite TV provider) will band together with their respective clientele databases to showcase “the benefits of the combination.”
The FCC will likely monitor AT&T’s activity after the merger to ensure it complies with regulations set out by the FCC. And to do, the communications committee will enlist in an independent officer to police AT&T.
In addition to an FCC watchdog, AT&T will submit completed interconnection agreements, further preventing AT&T to put a data cap on its networks and internet traffic – all this in compliance with the Open Internet Order.
AT&T has also expanded its wireless presence across the U.S.-Mexican border by acquiring Nextel Mexico for $1.88 billion and Mexican wireless provider, Iusacell, for $2.5 billion earlier this year.
And regardless of the FCC disapproving of AT&T’s purchase for rival, T-Mobile, spectators of the AT&T-DirecTV deal are optimistic that it will be finalized.
Other news in telecommunication mergers and acquisitions, Charter Communications $56 billion bid for Time Warner hasn’t reached agreements due to constant choke holds and run-ins with regulations.