NEW YORK ( TheDeal) -- AT&T (T - Get Report) and DirecTV (DTV - Get Report) are set to win federal approval for their $49 billion merger, a telecom mega-deal that has been under review by the Federal Communications Commission and the Justice Department for more than a year. The deal was announced in May 2014.

In a statement late Tuesday, FCC Chairman Tom Wheeler confirmed that he has circulated a draft order recommending that his fellow commissioners approve the merger with conditions. The terms Wheeler laid out include requiring AT&T to build out its high-speed fiber connections to an additional 12.5 million customers and would require AT&T to go beyond compliance with the FCC's new Internet neutrality rules by addressing two issues raised specifically by the merger.

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