News Articles

Monday, December 19, 2011

Takeover of T-Mobile USA is called off

AT&T logoUS telecom giant AT&T has called off its planned acquisition of T-Mobile USA from Deutsche Telekom.  As a result, AT&T will pay Deutsche Telekom a previously agreed ‘break up’ fee that’s expected to cost it around $4 billion. The acquisition deal was originally valued at $39 billion.

Randall Stephenson, AT&T chairman and CEO, said “Over the past four years we have invested more in our networks than any other U.S. company. As a result, today we deliver best-in-class mobile broadband speeds – connecting smartphones, tablets and emerging devices at a record pace – and we are well under way with our nationwide 4G LTE deployment. 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 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.”

In its announcement, AT&T also stated that “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.”

Print
Author: The Fonecast
0 Comments
Rate this article:
No rating

Categories: Networks and operators, NewsNumber of views: 3498

Tags: usa t-mobile legal at&t

Leave a comment

This form collects your name, email, IP address and content so that we can keep track of the comments placed on the website. For more info check our Privacy Policy and Terms Of Use where you will get more info on where, how and why we store your data.
Add comment

Follow thefonecast.com

Twitter @TheFonecast RSS podcast feed
Find us on Facebook Subscribe free via iTunes

Archive Calendar

«April 2024»
MonTueWedThuFriSatSun
25262728293031
1234567
891011121314
15161718192021
22232425262728
293012345

Archive

Terms Of Use | Privacy Statement