iWorld

AT&T to buy DirecTV for $48.5 billion

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/internet-images/2014/05/19/at%26t.jpg?itok=NRlrIOBA

NEW DELHI: The American telecom giant AT&T has decided to take over pay TV brand DirecTV for $48.5 billion, but will sell its 73 million publicly listed shares from America Movil in Latin America considering the strong presence DirecTV has in the video market there.

Combined the company would have roughly 26 million video subscribers, most from the DirecTV side, and a broadband network covering 70 million customer locations. 

“This is an unique opportunity that will redefine the video entertainment industry and create a company that is able to offer new bundles and deliver content to consumers across multiple screens – mobile devices, TVs, laptops, cars and even airplanes,” said AT&T’s chairman and CEO Randall Stephenson in a statement.

Meanwhile, the regulator is examining the three-month old proposal by Comcast Corp for a $45 billion takeover of Time Warner.

AT&T will not pay any fee to DirecTV if they do not get approval from the regulator.

Following the deal, the telecom giant will expand high-speed broadband to 15 million customer locations, primarily in rural areas, in four years.

AT&T will acquire DirecTV in a stock-and-cash transaction for $95 per share based on last Friday closing price. DirecTV shareholders will own around 14.5 to 15.8 per cent of AT&T shares. AT&T expects cost synergies to exceed $1.6 billion on an annual run rate basis by three years after closing.

DirecTV has 20.3 million American subscribers, while AT&T serves 5.6 million video customers connected to its U-Verse network. But DirecTV’s subscriber growth has slowed in recent months as it does not have a landline network to deliver high-speed internet services to homes, unlike phone and cable TV companies.

The deal will assist DirecTV to take on the combined entity between Comcast and Time Warner Cable. If combined, AT&T-DirecTV would serve roughly 26 million pay-TV customers. That would be less than the 30 million Comcast would have if regulators approve its purchase of Time Warner Cable.

The transaction enables the combined company to offer consumer bundles that include video, high-speed broadband and mobile services using all of its sales channels — AT&T’s 2,300 retail stores and thousands of authorised dealers and agents of both companies, an AT&T spokesperson said.

For customers who only want a broadband service and may choose to use video through an over-the-top (OTT) service like Netflix or Hulu, the combined company will offer stand-alone wireline broadband service at speeds of at least 6 Mbps (where feasible) in areas where AT&T offers wireline IP broadband service at guaranteed prices for three years.

AT&T will continue to offer DirecTV service on a stand-alone basis at nationwide package prices for at least three years after closing.

In 2015, AT&T will bid at least $9 billion provided there is sufficient spectrum available in the auction to provide AT&T a viable path to at least a 2×10 MHz nationwide spectrum footprint. 

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/19/amazone-prime%20%281%29.jpg?itok=3CN-hLuv
Amazon Prime Video India ties up with OML

Amazon Prime Video India has entered into a partnership with OML (Only Much Louder) to release 14 comedy specials exclusively for Amazon. The shows are set to launch in May.

iWorld Video On Demand
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/19/TDSAT800_0.jpg?itok=Qtkmakk-
Idea petitions TDSAT against TRAI; price war set to escalate

MUMBAI: Idea Cellular has petitioned TDSAT seeking to stop Reliance Jio from continuing free services till 31 March. In December 2016, India's largest telco Bharti Airtel had moved the tribunal over the same issue.

iWorld Telecom
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/19/Niti_Aayog-Narendra_Modi.jpg?itok=xIS0FZLC
Sops offered to promote indigenous electronics industry

NEW DELHI: In a move to give incentive to the electronics sector, the Government has taken steps to expedite investments into the Electronics System Design and Manufacturing (ESDM) sector in India to achieve the goal of ‘Net Zero imports’ in electronics by 2020.

iWorld eNews
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/19/Horrid-Henry_Nitesh-Kripalani.jpg?itok=PAxZhLTA
Zodiak shows to be on Amazon Prime in early '17

MUMBAI: Zodiak Kids has announced that it has sold a series of titles to Amazon India, in a deal amassing over 100 hours. The shows are set to launch on Amazon Prime Video in early 2017.

iWorld Video On Demand
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/18/Anupam-Shrivastava.jpg?itok=fURGQS0W
BSNL launches FMT & Ditto TV; 4G planned this year

MUMBAI: State-run BSNL is now making diligent changes to their services. The service provider has gone beyond its limits and adapting to the dynamic changes in the Indian telecom scene.

iWorld Telecom
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/18/Mukesh-Sunil.jpg?itok=FTXaEv5U
Jio may use US$4.4bn to lay OFC, expand network to stifle competition

MUMBAI: It's common knowledge that Reliance Jio, Mukesh Ambani's telecom venture, is up against incumbent rivals such as Vodafone, Bharti Airtel, and Idea Cellular. Jio closed 2016 with 72.4 million subscribers. Last September, it claimed to be the fastest growing technology operation in the globe...

iWorld Telecom
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/17/mtnl-800x800.jpg?itok=WuUVxEfE
NDMC-MTNL tie up to provide free Wi-fi & FTTH

A fresh attempt is being made by the New Delhi Municipal Corporation (NDMC) to provide free Wi-Fi services in Connaught Place and Khan Market with a tie-up with the Mahanagar Telephone Nigam Ltd, after the first attempt lost credibility with complaints of slow or no connectivity.

iWorld Telecom
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/18/OTT-800X800.jpg?itok=YgbC4X3B
Global OTT may expand at 14.5 per cent CAGR

MUMBAI: Over-the-top (OTT) content is the delivery of audio, video, images, and other media over the internet and bypasses traditional content distribution services. OTT services are mostly related to communication and media and are generally lower in cost than the traditional method of content...

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/01/16/Ambani.jpg?itok=HWZwbeyv
Q3-17: Reliance: Jio busts records, organized retail op profit grows 55 percent

The Mukesh D Ambani led Reliance Industries Limited (RIL) organized retail segment - Reliance Retail, continued its growth momentum and profitability in the quarter ended 31 December 2016 (Q3-17, current quarter), while its digital services offering Jio has broken all records in terms of...

iWorld Telecom

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories