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Several Reasons Why the AT&T and DirecTV Merger Will be Approved

Investors and customers are waiting anxiously to hear an announcement that the Federal Government has approved the merger between AT&T and DirecTV.

Signs are definitely pointing towards the merger being approved since the Justice Department, FCC and SEC offices have been swarmed for the past week or more with reps from both companies involved.  All parties involved are apparently scrambling to provide answers and figures to the proper government agencies, and hammering out detailed answers to new questions the regulatory authorities are asking.

This activity, paired with the recent filings that show the companies have met with Anti-trust regulators is a major sign that the 45 billion dollar merger is close to being approved.

The companies have also sweetened the deal they are presenting to the government by presenting detailed plans to deliver their internet services to an additional 2 million households throughout the U.S. Discussions have also been held to plan out how AT&T wireless customer bills will be affected by the merger. Interconnection fees has also been the main topic during several meetings and how this merger would affect companies that pay these fees (such as Netflix) to guarantee their content moves across the net in a high quality manner.

Allowing fees like this is a hot topic currently because it would allow major companies like this to determine which video streaming services remain uninterrupted, and thus more popular with consumers. These fees are one of the major reasons the merger between Comcast and Time Warner Cable was denied by regulators early in the talks.

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