AT&T Inc. (NYSE:T) is still in the negotiation and review processes for the acquisition of DIRECTV (NASDAQ:DTV). However, things do not seem to be going as expected.
When the Federal Communications Commission introduced the net neutrality regulations, AT&T felt that the rules would interfere with most of its operations and thus derail them from their plans. The situation was so dire that the company decided to sue the regulatory body. According to The Washington Post, the firm would have to comply with some of the new regulations the $49 billion acquisition is approved by the FCC.
The change of heart is a bid deviation from the company’s previous claim that it would not attach any neutrality agreements to the merger. It is also a surprising turn of events from the stand with Comcast Corporation (NASDAQ:CMCSA). Comcast had also vowed that it would drop its merger plans with Time Warner Cable Inc (NYSE:TWC) rather than subjecting to the net neutrality laws.
So the current question is which part of the new regulations AT&T will subject to. Currently, it has been revealed that the firm will submit to the FCC’s ban different speeds for specific content and blocked websites. The regulatory body will also restrict companies like Netflix from introducing premium services that offer content at faster speeds.
There are many other issues that the parties have not addressed. However, analysts are still waiting to see how AT&T will deal with the connections and partnerships with the likes of Netflix. The FCC has the notion that companies should deliver the content without speed fees. AT&T Inc. (NYSE:T) has a different opinion in minds. The company feels that it is fair to maintain the deals with private delivery companies.
There are still many other issues that the company and the FCC are yet to come to terms with before the merger is lagged off. One of the unresolved issues is whether the company can offer music streaming and a few other services that are not subject to client data limits.