AT&T abandons acquisition of T-Mobile

AT&T abandons acquisition of T-Mobile

AT&T has abandoned its bid to buy T-Mobile, accusing the United States government of harming customers and halting 'much needed' investment in 4G in the US.

The US telecoms company launched the $39bn bid to buy the operator in March but the deal hit several hurdles in achieving regulatory approval. A report by the Federal Communications Commission, which was issued last month, said the merger would lead to 'significant harms to competition', a decrease in consumer choice and less innovation in the American mobile market.

The abandoned deal will still cost AT&T. It will have to pay $4bn to T-Mobile parent company Deutsche Telekom and has also signed a roaming agreement with the company.

In a release issued today (19 December), AT&T argued the merger would address a spectrum shortage in the US and by abandoning the deal, customers and investment would be harmed.

AT&T chairman Randall Stephenson said the US government needs to allow the free market to snap up additional spectrum to meet consumer demand.

He said: 'The mobile internet is a dynamic industry that can be a critical driver in restoring American economic growth and job creation, but only if companies are allowed to react quickly to customer needs and market forces.'

Written by Mobile Today
Mobile Today


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