Businesses Get Broadband Access with AT&T, DirecTV Deal

Businesses Get Broadband Access with AT&T, DirecTV Deal

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AT&T will offer more small businesses access to its all-fiber high speed Internet connection as part of a deal to acquire satellite provider DirecTV.

AT&T recently announced folding DirecTV, a direct broadcast satellite provider of digital television, into its company.

DirecTV will receive 1.892 shares of AT&T stock plus $28.50 in cash per share of company owned DirecTV stock as part of the deal.

But the Federal Communication Commission has issued other conditions for allowing the acquisition to proceed. One is that AT&T must offer access to the company’s all-fiber service to at least 12.5 million customer locations or within it’s footprint. Those include not just residences but also specifically home offices and very small businesses. The company must also offer 1 Gbps service to schools or libraries within it service area should they request it.

AT&T is well known for various telephone services and currently advertises as a cellular telephone network. It also provides pay networks and Internet access.

The telecom is also partially in the business of providing television and Internet, so it only makes sense to expand these capabilities. AT&T has folded in several companies over the years, mostly telephone companies.

Over the years, it has started to build a fiber network of multiple gigs called Gigapower. Acquiring DirecTV will allow the company to provide additional content for devices like smartphones and tablets that use its network.

In a prepared release, Randall Stephenson, AT&T chairman and CEO, says:

“Combining DIRECTV with AT&T is all about giving customers more choices for great video entertainment integrated with mobile and high-speed Internet service. “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 adds:

“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. We’re now a fundamentally different company with a diversified set of capabilities and businesses that set us apart from the competition.”

AT&T has a joint venture with The Chernin Group through its division, Otter Media, through which it plans to launch over-the-top (OTT) video services.It has purchased a majority stake in Fullscreen, an online media company with over 50,000 content creators.

Customers of DirecTV and AT&T don’t have to do anything special as the transition takes place. Eventually, new services and bundles will be offered to all customers. For answers to questions, see FAQs at DirecTV’s website.

AT&T Store Photo via Shutterstock


JoAnn McFarland JoAnn McFarland is a Staff Writer for Small Business Trends. She covers breaking news such as new product announcements, government policy, acquisitions and other industry developments. She is a published author and comes from a family-business background.

3 Reactions
  1. AT&T is only focused in large metro areas. It doesn’t even offer landline telephone service in my area. Won’t hold my breath for fiber optic services to reach my area. Way behind the power curve.

  2. It is amazing how the Internet has evolved. Back then, we are okay with just DSL. Now we have Fiber. Are you sure that it is really different?

  3. I’m excited about the merger. I live in a rural area where we cannot get ATT landline, I’m hoping they will expand this service in the future. Right now I have Windstream which is a bunch of CRAP, internet svc locks up at least 15-20 times a day in the middle of a transaction. Have to completely shut down the computer and start over again. Please, please ATT expand the landline svc or have it bundled with your satellite.