AT&T says it’ll bring gigabit Internet to 2M homes if DirecTV deal gets approved

Image Credit: Illustration via Tom Cheredar
NOTE: GrowthBeat tickets go up $200 this Friday at 5pm Pacific. VentureBeat is gathering the best and brightest in modern digital marketing to help declutter the landscape, simplify the functions, clarify the goals, and point the way to success. Get the full scoop here, and register by Friday to save!

For AT&T to pull off its $48.5 billion acquisition of satellite TV service provider DirecTV, the company is willing to promise access to ultra high-speed Internet.

More specifically, AT&T told regulators that it was ready to invest in building out its Gigapower fiber Internet service — which offers download speeds of up to 1 gigabites per second — so that it would be available in 2 million homes, according to a regulatory filing yesterday. Of course, this is contingent on the DirecTV deal going through.

AT&T and DirecTV announced the deal last month. It would give the telecom company a nationwide TV service product that it could then bundle with its wireless phone/data service. However, the deal was immediately criticized as yet another way media companies are slowly conglomerating rather than innovating. It also follows a massive merger of the country’s two largest cable providers, Comcast and Time Warner Cable, in a deal worth $45.2 billion.

And while faster Internet might sound nice, there’s plenty of reason to be skeptical of AT&T’s promise. For instance, DSL Reports points out that AT&T was already planning to upgrade 2 million homes with access to Gigapower service as a way to stay competitive against Google Fiber, which has a pretty strong and positive PR buzz.

Additionally, the AT&T-DirecTV deal would mean less competition for TV and Internet service for consumers and would empower AT&T to demand more money from content programmers as well as from consumers.



More about the companies and people from this article:

AT&T is bringing it all together, from revolutionary smartphones to next-generation TV services and sophisticated solutions for multi-national businesses. For more than a century, they have provided innovative, reliable, high-qualit... read more »

DIRECTV (DTV) is the world's leading provider of digital television entertainment services. Through its subsidiaries & affiliated companies in the United States, Brazil, Mexico & other countries in Latin America, DIRECTV provides digit... read more »

Powered by VBProfiles

Ric Sansand
Ric Sansand

Not only is it Frak you Direct TV is double Frak you for this kind of crony BS capitalism. Shove your fiber ATT, I will wait for Google or anyone else for that matter.