Consolidation has swept the industry as people increasingly turn to the Internet for video and content costs rise for cable and satellite TV companies.
A bigger AT&T would have more leverage in negotiations with big media companies over the price paid for popular channels.
That’s because regulators were concerned that a bigger Comcast would have had too big a chunk of the country’s high-speed Internet customers, which are seen as the future of the industry.
The FCC has become concerned about the potential of fights over such traffic agreements, called “interconnection” deals, to disrupt service for consumers.
The FCC would also require that 12.5 million customer locations have access to a speedy fiber Internet connection and make an “independent officer” regulate compliance with the deal’s conditions.