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Following DirecTV merger, AT&T expects growth in wireless video, broadband

14 Aug, 2015

AT&T’s recent merger with DirecTV is having an impact on the company’s services. The company recentlyannounced that it would replace its current U-verse in-home platform with DirecTV’s equipment. This change will provide the option to integrate “mobile, social, and entertainment capabilities.”

The equipment change is further evidence of the integrated approach AT&T is taking to changes in the video marketplace. Last week the companyannounced a new package that will combine television and wireless phone services. Subscribers will have consolidated bills and the option to watch video on wireless devices wherever they go.

The Federal Communications Commission (FCC) approved the AT&T-DirecTV merger earlier this month, noting that the deal was good for innovation and in the public interest. But the FCC also imposed conditions on the new company. As part of the deal, AT&T committed to increase its all-fiber deployment to 12.5 million customer locations, to offer gigabit service to any E-rate eligible school within the company’s landline service area, to “refrain from imposing discriminatory usage-based allowances,” and to make available a low-priced broadband service for low-income consumers in its wireline footprint.

In a recentstatement to investors, AT&T outlined its plans and expectations for broadband expansion over the next three years:

AT&T continues to expect to boost broadband speeds and now plans to expand its high-speed Internet service to reach more than 60 million customer locations by the end of 2018. The company also plans to expand its all-fiber broadband footprint. When the expansion is complete, AT&T’s all-fiber broadband footprint will reach more than 14 million residential and business customer locations.  Current GigaPower deployments have exceeded penetration expectations with costs per customer location passed running much lower than original expectations.

AT&T to stop investing in U-verse CPE, will move to new in-home architecture using DirecTV system (FierceCable, Aug. 12, 2015)

AT&T Says Users Can Watch TV on Any Device With Its New Bundle, the First of Its Kind (New York Time, Aug. 3, 2015)

AT&T Expects Revenues, Earnings and Free Cash Flow in 2015 and Each of the Next Three Years (AT&T, Aug. 12, 2015)


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