You don’t go into negotiations with $67 billion to spend on acquiring DirectTV and not have a plan. One of the benefits to AT&T acquiring DirecTV isn’t a new technology at all; it’s a fixed wireless local loop. Essentially, the technology allows customers to get home phone and broadband data service through a wireless connection to the nearest cell tower instead of through a wire connected to the house. Antennas on homes will allow higher transmission speeds. As the networks themselves improve, so will the speeds available to the home. At a technology conference this week, AT&T Chief Financial Officer John Stephens also mentioned the wireless loop technology and said the DirecTV deal would help make possible the additional investments required for the broadband expansion. “And then, quite frankly, we will look at other technology opportunities, ones I know about today or ones that may come up in the coming years as things continue to develop,” Stephens said. While AT&T singled out rural areas in its wireless local loop statements this week, the technology works in urban areas as well, where it could expand availability and increase competition.
