Last Monday, AT&T announced that it has given up on its plan to acquire T-Mobile and to perhaps become the largest wireless carrier in the U. S. As previously promised, AT&T will pay T-Mobile owner Deutsche Telecom the $4 billion breakup fee.
As you remember, AT&T offered to buy T-Mobile in March for $39 billion. But the Department of Justice and the FCC both blocked the acquisition, saying that it would reduce competition, reduce consumer choice, and raise prices.
“The actions by the Federal Communications Commission and the Department of Justice to block this transaction do not change the realities of the US wireless industry,” an AT&T statement reads. “It is one of the most fiercely competitive industries in the world, with a mounting need for more spectrum that has not diminished and must be addressed immediately. The AT&T and T-Mobile USA combination would have offered an interim solution to this spectrum shortage. In the absence of such steps, customers will be harmed and needed investment will be stifled.”-SuperSite for Windows-