U.S. FCC says it has 'serious concerns' about AT&T sponsored data program

The U.S. Federal Communications Commission told AT&T Inc it has "serious concerns" about whether rivals will be able to compete with its DirecTV Now online video service that will cost $35 a month and demanded answers by Nov. 21.

The FCC wireless telecommunications bureau told AT&T in a letter reviewed Thursday by Reuters that AT&T's DirecTV service "may obstruct competition and harm consumers" because it could be too expensive for rivals not affiliated with AT&T to sponsor data programs to compete.

(Reporting by David Shepardson; Editing by Lisa Shumaker)