AT&T breaks up with T-Mobile and cuts merger plans

Well, it seems that the relationship between AT&T and T-mobile was solely lust. According to The Wall Street Journal, AT&T gave up its attempt to pull off the $39 billion merger after being attacked by the government. Apparently, if two major carriers merge, it’s sort of a monopoly – who knew?

As a penalty for the breakup, AT&T must take on a $4 billion accounting fee paid to the order of Deutsche Telecom, T-mobile’s mommy. To clear the dust, AT&T had the following to say:

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.

So what ridiculous merger will be attempted next? Say, AT&T and… Sprint?

Source: TWSJ

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