AT&T is touting to regulators that its proposed acquisition of DirecTV would enable the combined company to speed up deployment for ultra-fast Internet and entertainment networks. But buried deep in an SEC filing, AT&T also offers the prospect of more fixed wireless broadband at cable-like speeds.

In a widely reported Q&A, AT&T (NYSE: T) rattled off multiple benefits of the DirecTV merger, such as faster fiber-to-the-premises services and “bundles” of Internet, TV as well as wireless.

But here’s something that caught my eye – something that will appeal to regulators and government officials who want to see more broadband delivered to rural areas:

“How competitive will the deployment of your fixed wireless broadband service be?

“Today, many Americans in rural areas lack access to a high speed broadband service or have access to only one provider. With the cost synergies and increased revenue from this transaction, AT&T will expand its high speed broadband build to offer a competitive bundle of high speed fixed wireless broadband and satellite video service. We expect fixed wireless broadband to provide speeds of 10 -15 Mbps during peak periods with even higher maximum speeds during off peak times.”

The latest 4G LTE wireless networks offer up to 12 Mbps of speed, but these networks can hit hard in the bank accounts for data use.

More WRAL TechWire Coverage of AT&T Fiber:

  • AT&T to regulators: Approve DirecTV deal, get fiber faster
  • AT&T expands potential gigabit offering to more NC areas
  • NCNGN endorses AT&T fiber plan
  • Raleigh signs on to AT&T gigabit Internet plan.
     

AT&T doesn’t mentioned WiFi networks in the deal, but followers of the North Carolina Next Generation Network consortium know that the group wants WiFi to augment any commercial high-speed network it helps bring to the Triangle and Triad. AT&T includes WiFi in its proposal.

WiFi can support speeds over 50 megabits, so it’s a faster, cheaper alternative than 4G LTE.

However, if AT&T brings extensive WiFi networks into the DirecTV deal along with satellite (that’s DirecTV’s delivery method) the result is a  combined venture with a soup-to-nuts network. 

Here’s how AT&T describes post-merger offerings:

“This transaction is a clear combination of complementary assets and capabilities that creates a strong consumer bundle which will also drive improvements in customer retention. With this deal, the combined company would be able to offer:

  • A pay TV, broadband and mobile service bundle to at least 70 million customer locations.
  • A pay TV and wireless service bundle to approximately another 45 million U.S. customer locations.”

Unfortunately, AT&T makes no mention of breaking up the entertainment bundles to offer entertainment al a carte.

“The deal provides significantly greater scale in video, affording us the ability to offer programmers better value and therefore the opportunity for us to obtain correspondingly better per subscriber content costs. We will be able to have a more competitive bundle of pay TV and high speed broadband for our customer locations where our current plans give us the double-play bundling opportunity today.”

RST Fiber in Shelby is promising al a carte content. The issue has been a hot one for cable providers – and without bundles who knows what would happen to them? But since U-verse and DirecTV bundle, too, they face the same threat.

Accelerated Fiber Deployment

The one paragraph in the Q&A that drew much media attention was AT&T’s statement that the financial benefits of the deal such as reduced costs would enable it to accelerate broadband network capabilities. And the Triangle is already high on the list thanks to the NCNGN endorsement.

Here’s the paragraph:

“The economics of this transaction will allow the combined company to upgrade 2 million additional locations to high speed broadband with Gigapower FTTP (fiber to the premise) and expand our high speed broadband footprint to an additional 13 million locations where AT&T will be able to offer a pay TV and high speed broadband bundle.”