AT&T revenue mix to change after $48.5 bn DirecTV deal

AT&T today said its revenue mix will change after concluding the $48.5 billion acquisition of DirecTV, and the recent deals with Iusacell and Nextel Mexico.

The wireless carrier said its largest revenues will be, in descending order: Business Solutions (both wireless and wireline); Entertainment & Internet; Consumer Mobility; and International Mobility and Video.

Highlights of the DirecTV deal

# AT&T has 26.4 million cable and satellite TV subscribers in the U.S.
# AT&T has more than 132 million wireless subscribers in the U.S. and Mexico
# AT&T 4G LTE mobile coverage reaches nearly 310 million people in the U.S.
# AT&T covers 57 million U.S. customer locations with high-speed Internet
# AT&T has nearly 16 million high-speed Internet service subscribers
# AT&T will be bigger than Comcast and Charter, which is seeking FCC approval to buy Time Warner Cable
# DirecTV also has 19.5 million customers in Latin America, where AT&T wants to grow

Randall Stephenson, AT&T chairman and CEO, said: “This transaction allows us to expand our high-speed Internet service to reach millions more households, which is a 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 CEO Randall Stephenson image by Bloomberg
AT&T will launch new integrated TV, mobile and high-speed Internet offers that give customers better value and convenience.
AT&T will expand its all-fiber broadband footprint to reach more than 14 million customer locations in the U.S.

John Stankey will be CEO of AT&T Entertainment & Internet Services, responsible for DIRECTV and AT&T Home Solutions operations. DIRECTV President, Chairman and CEO Mike White announced his plans to retire.

FCC conditions

# AT&T will offer its all-fiber Internet access service to at least 12.5 million customer locations, such as residences, home offices and very small businesses within 4 years.

# Combined with AT&T’s existing broadband network, at least 25.7 million customer locations will have access to broadband speeds of 45Mbps or higher.

# AT&T will offer 1Gbps service to any eligible school or library requesting E-rate services within its all-fiber footprint.

# AT&T will offer discounted fixed broadband service to low-income households that qualify for the government’s Supplemental Nutrition Assistance Program.

# AT&T will offer service with at least 10Mbps speeds for $10 per month where service is available.

# Elsewhere, AT&T will offer 5Mbps speed for $10 per month or, in some locations, 3Mbps service for $5 per month.

# AT&T’s fixed broadband Internet services will not favor its own online video programming services.

# AT&T can and will, however, continue to offer discounted integrated bundles of its video and high-speed Internet services.

# AT&T will appoint a Company Compliance Officer to develop and implement a plan to ensure compliance with these merger conditions.

# AT&T will engage an independent, third-party compliance officer to evaluate the plan and its implementation, and submit periodic reports to the FCC.

Baburajan K
[email protected]