After a number of setbacks, AT&T today announced that it has ended its US$39 billion bid to acquire T-Mobile USA. Aside from concerns and lawsuits from competitors, AT&T faced intense scrutiny from both the Federal Communications Commission and the Department of Justice and lays the blame at their feet:
The actions by the Federal Communications Commission and the Department of Justice to block this transaction do not change the realities of the U.S. wireless industry. 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.
AT&T promises to “continue to be aggressive in leading the mobile Internet revolution” and to invest to meet its customers’ needs but calls on policymakers to “allow the free markets to work” and to “enact legislation to meet our nation’s longer-term spectrum needs.”
The end of AT&T’s bid will see it pay a US$4 billion break-up fee to Deutsche Telekom, T-Mobile’s parent company. It also announced a “mutually beneficial” roaming agreement with Deutsche Telekom that will allow devices to work on both the AT&T and T-Mobile networks.