It’s official, and not the least bit surprising at this point: AT&T has ended its attempt to acquire T-Mobile USA. It’s not happy about it, either:
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’s agreement with T-Mobile parent Deutsche Telekom requires it to fork over $4 billion in penalties, which probably doesn’t make AT&T any less cranky.I’m glad that the merger didn’t happen, simply because I don’t want to see AT&T and Verizon share a wireless-industry duopoly. The continued existence of T-Mobile USA in some form–it may well be bought out by someone else–helps prevent that eventuality. I wonder what AT&T’s backup plan is, and whether we’ll even remember this non-merger five or ten years from now?
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