AT&T ends pursuit of T-Mobile USA

20 Dec 2011

AT&T has dropped its bid for T-Mobile USA following fierce regulatory opposition. The failure of the proposed USD39 billion deal leaves both AT&T and the parent of T-Mobile USA, Deutsche Telekom (DT), seeking alternatives. AT&T is looking for ways to gain additional wireless spectrum, while DT is now forced to reassess what to do with its struggling US subsidiary. Although DT will receive a compensatory payment of USD4 billion from AT&T, some analysts regard the deal’s failure to be more of a blow for DT as the German company has very few obvious alternatives available. For AT&T’s part, company CEO Randall Stephenson has urged policy-makers to make additional wireless spectrum available. Some AT&T investors may call into question the wisdom of the company’s dogged and ultimately failed pursuit of T-Mobile USA: while AT&T has been battling to gain approval for the deal, rival Verizon Wireless has been steadily buying spectrum from cable operators.

United States, AT&T, Deutsche Telekom (DT), T-Mobile US