AT&T says resistance futile, ends attempt to assimilate T-Mobile
AT&T has capitulated under Federal Communication Commission (FCC) and Department of Justice (DoJ) opposition and decided to abandon their efforts to merge with Deutsche Telekom's T-Mobile USA.
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 will have to pay DT the $4 billion break-up fee, and press ahead with a roaming agreement.
So, how we feeling about this? Happy? Angry? Did the government just save us from an even smaller oligopoly of telco providers, or did they interfere with the natural course of capitalism. And what if anything does this mean for iPhone on T-Mobile?
Source: Street Insider