AT&T withdraws FCC application to buy T-Mobile, continues to purse deal -- wait, what?

Following a Federal Communications Commission proposal for hearings on the deal, AT&T has withdrawn its FCC application to buy T-Mobile USA from parent company Deutsche Telekom while simultaneously announcing they're continuing to try and get DoJ approval. Still at stake -- a ton of AT&T's cash.

As a result of the FCC’s action, AT&T expects to recognize a pretax accounting charge of $4 billion ($3 billion cash and $1 billion book value of spectrum) in the 4th quarter of 2011 to reflect the potential break up fees due Deutsche Telekom in the event the transaction does not receive regulatory approval.

Once again the proposed AT&T - T-Mobile USA merger -- AT&TMo if you're nasty -- proves itself to be the Schrodinger's cat of the wireless industry. And that's not good news for T-Mobile users still waiting... and waiting... and waiting... to get the iPhone on their network.

Source: AT&T