AT&T makes bet on video with $48.5-bn DirecTV bid

The combination with DirecTV, the No.1 US satellite TV provider with 20 million customers, would beef up Dallas-based AT&T's packages of cellular, broadband, TV and fixed-line phone services

AT&T Inc plans to pay $48.5 billion to buy DirecTV, in the latest sign that the wireless industry and the US television market are set to converge as customers consume more video on their mobile devices.

The deal, announced on Sunday, highlights AT&T's pressing need for fresh avenues of growth beyond the maturing US cellular business, which has become increasingly competitive.

The combination with DirecTV, the No.1 US satellite TV provider with 20 million customers, would beef up Dallas-based AT&T's packages of cellular, broadband, TV and fixed-line phone services.

For DirecTV, the deal will enable it to offer broadband internet for the first time to its US customers, filling in a gap that had made the company vulnerable to cable rivals, which can provide internet service through their networks.