AT&T and DirecTV announce massive merger
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One of the largest mobile phone providers in the United States may soon expand enormously to add television to their provided services. AT&T recently offered to buy DirecTV for a price tag comparable to the entire GDP of Uruguay—$48.5 billion.
The massive proposal is reminiscent of Comcast's yet-to-be-approved $45 billion plan to acquire Time Warner Cable. AT&T's expansion into the television market through the U.S.'s top satellite TV provider could raise the bar for the company's largest competitor, Verizon, which, on par with Comcast, provides mobile phone, internet and cable in many areas around the country.
The deal would render DirecTV into an internet provider like many of its competitors, but also positioning the company under changing FCC regulations and public scrutiny.
AT&T cited DirecTV's brand as well as a growing competitiveness in "Latin American business" among reasons that the company was targeted for partnership.
The deal includes an expansion of broadband services to 15 million customer locations, an option for customers to sign on to just internet service or just DirecTV without other components and a three-year commitment to recently overhauled 2010 FCC open internet rules.
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