AT&T and Verizon announced Monday that they will combine their cable TV business with the latter’s wireless TV unit, and the latter is expected to close in the third quarter.
The deal, which was first reported by Bloomberg, is expected within weeks.
AT&Ts TV unit has long been the dominant provider of cord-cutting-friendly programming on a range of TV services.
But in the past, it has struggled to attract subscribers.
It has been struggling to get into new markets, and it has also struggled to compete in markets where other providers have invested heavily in high-definition TV sets.
AT &t has struggled in some markets, including California, Texas, Florida and New York, where it has not yet entered the market.
But the combined entity will compete aggressively with rivals such as Comcast Corp., Charter Communications Inc. and Time Warner Cable Inc. The move will add new competition for AT&ts in areas such as broadband, high-speed internet and home-security systems.
Verizon Wireless, meanwhile, is also building out a TV business that includes its high-end TV and video service, VUDU.
has struggled badly to capture consumers in the cord-cutter era.
The company reported last year that it had lost 5.5% of its U.S. TV subscribers in the second quarter, an improvement from a year earlier, but still lower than the 5% decline seen in the U.K., the U:1 in China and in Germany, the three largest countries in the world for cord- cutters.
AT shares have fallen since the Verizon deal was announced.
Verizon and AT&t share about 80% of the U.’s TV market.
Verizon has struggled with falling TV sales and the merger could help boost sales.
AT said it expects to see a 30% drop in advertising revenue in the first half of 2018, compared with the same period last year.
AT plans to use some of the savings to expand its DirecTV Now video-on-demand service.
Verizon said it is not committing to buy DirecTv.
Verizon, which has long relied heavily on TV to sell its services, also is working on a $1 billion acquisition of a U.C.N. telecommunications satellite service.
AT says it is buying a satellite television company in a deal valued at about $700 million.
Verizon is also acquiring a satellite TV business in an $8.7 billion deal with AT<g that includes a $500 million investment from AT>.
AT is also buying a video-delivery service from the French satellite company, SES, which will combine with a video service from a rival in China.
AT also has a deal in place with AT Kearny in the United Kingdom, a company that provides satellite TV service in the Middle East and Africa.
The transaction is subject to regulatory approval, AT said in a statement.
AT. said the new venture will be called AT&ctv and will combine the AT&c TV unit with a new company called AT >.
Its TV service will compete with Directv Now.