Back in March, AT&T announced its plans to acquire T-Mobile USA, the American subsidiary of German carrier Deutsche Telekom, for $39 billion. After facing months of scrutiny from the U.S. government and Sprint, however, AT&T has officially announced by way of press release that it will no longer be pursuing its plans to acquire the U.S.’s fourth-largest carrier in T-Mobile.
AT&T withdrew its application to merge with T-Mobile from the FCC less than a month ago, after it was determined that merging the two carriers would be monopolistic; in other words, it would significantly reduce competition between mobile carriers in the United States. AT&T will now be forced to pay Deutsche Telekom $4 billion because this deal fell through, a pretax accounting charge that AT&T agreed to pay if the merger was unsuccessful.
“AT&T will continue to be aggressive in leading the mobile Internet revolution,” said Randall Stephenson, AT&T chairman and CEO. “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.