AT&T/DirecTV Conditions are a Step Forward, But Consumers Remain Vulnerable

Washington, DC — The chairman of the Federal Communications Commission circulated a proposal yesterday to approve AT&T’s proposed merger with DirecTV, contingent on several conditions designed to protect competition in the broadband and pay-TV markets. The conditions include requirements that AT&T be more transparent about how it exchanges traffic to and from its network (a process known as “interconnection”), offer a discounted broadband plan to qualifying low-income households, and not use data caps to disfavor online video competitors. The Open Technology Institute repeatedly urged the FCC to impose conditions on this transaction.

The following statement can be attributed to Joshua Stager, Policy Counsel for New America’s Open Technology Institute:

“Interconnection abuse is a clear and present threat to consumers and the Open Internet, so we're pleased to see the FCC taking a close look at AT&T's interconnection practices. However, we remain deeply concerned that millions of AT&T customers are not getting the broadband service they paid for — and that they remain vulnerable under the terms of this transaction.”

“The recent Internet Health Test revealed that AT&T's interconnection points are severely congested. As a result, millions of AT&T customers are experiencing severe service degradation. In some places, the speeds are essentially unusable. Although AT&T has long kept its interconnection practices shrouded in secrecy, one thing is clear: when interconnection fails, consumers lose.”

“We applaud any condition that cracks open the black box of interconnection for public scrutiny. Any transparency is an improvement over the status quo, and we hope that the proposed condition helps the FCC protect consumers from further harm. We also applaud the Commission for securing a commitment from AT&T to offer a discounted broadband service for low-income Americans.”

“However, consumers need more. The FCC needs to protect all broadband customers from interconnection abuse by banning harmful and anticompetitive practices. Consumers also need more choices in broadband providers. We look forward to continuing to work with the FCC on policies that will keep the Internet free, open, and competitive.”