AT&T withdraws bid to buy T-Mobile
There is no joy in Dallas tonight.
After thoroughly reviewing the matter, AT&T has decided to end its bid to acquire T-Mobile. Even though the Justice Department, Federal Communications Commission and other industry members may disagree, AT&T still holds the position that such a merger would have been a good thing citing the need for more spectrum. Spectrum needed to handle the growing consumer demand.
AT&T pledges to continue to be aggressive in leading the mobile revolution but took the opportunity to challenge policy makers to do their part. Chairman and CEO Randall Stephenson stated,
“To meet the needs of our customers, we will continue to invest. However, adding capacity to meet these needs will require policymakers to do two things. First, in the near term, they should allow the free markets to work so that additional spectrum is available to meet the immediate needs of the U.S. wireless industry, including expeditiously approving our acquisition of unused Qualcomm spectrum currently pending before the FCC. Second, policymakers should enact legislation to meet our nation’s longer-term spectrum needs."
The penalty for withdrawing the acquisition proposal.. $4 Billion that will be charged against the 4th Quarter of 2011. On the plus side, AT&T will enter into a mutually beneficial roaming agreement with Deutsche Telekom. So while the sale fell through, an AT&T and T-Mobile partnership may still be a possibility.