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AT&T to Offer Low-Cost Broadband After DirecTV Merger

WASHINGTON -- As it continues to work toward Federal Communications Commission approval of its proposed DirecTV merger, AT&T has told the agency it will offer standalone broadband service to low-income households for up to four years at prices as low as $5 per month.

That's according to an FCC filing on a meeting between FCC commissioner Mignon Clyburn and AT&T D.C. execs Jim Cicconi and Bob Quinn.

Clyburn has said the combined companies should offer an affordable broadband service to low-income households as part of their deal.

The AT&T execs promised that where AT&T speeds currently exceed 3 Mbps, it would offer wireline DSL service up to 5 Mbps for $10 for the first 12 months, increasing to $20 per month for the next three years.

Where it offers "top speeds" below 5 Mbps, AT&T will offer a wireline DSL service of 1.5 Mbps for $5 per month for the first 12 months and $10 per month for the next three years.

"The Commission should promptly approve the transaction so that consumers can begin to enjoy the resulting pro-competitive, public interest benefits," said AT&T counsel Peter Schildkraut in the ex parte letter describing the meeting with Clyburn.