AT&T ends $39 billion bid to acquire T-Mobile USA

in Blog, AT&T, T-Mobile, 4G, LTE

AT&T has announced end of its $39 billion bid to acquire T-Mobile USA from Deutsche Telekom amid anti-trust concerns. Last month, AT&T and Deutsche Telekom, said they would continue to pursue anti-trust approval for the $39 billion takeover from the U.S. Department of Justice, but withdrew applications to the FCC.

AT&T in a press statement said today, "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. 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".

“Over the past four years we have invested more in our networks than any other U.S. company. As a result, today we deliver best-in-class mobile broadband speeds – connecting smartphones, tablets and emerging devices at a record pace – and we are well under way with our nationwide 4G LTE deployment," said Randall Stephenson, AT&T chairman and CEO.

To reflect the break-up considerations due Deutsche Telekom, AT&T will recognize a pretax accounting charge of $4 billion in the 4th quarter of 2011.  Additionally, AT&T will enter a mutually beneficial roaming agreement with Deutsche Telekom.

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