What You May not Know About the AT&T T-Mobile Breakup

Most of my readers no doubt know that AT&T has decided not to pursue the acquisition of T-Mobile USA because the US government deemed the transaction would hurt consumers.

One of the best articles I have seen on the matter however comes from the AP and is worth a read. Here are some highlights:

  • The Justice Department had sued on Aug. 31 to block the merger.
  • AT&T’s purchase of fourth–ranked T–Mobile, announced in March, would have made it the largest cellphone company in the U.S.
  • AT&T will now have to pay Deutsche Telekom $3 billion in cash as a breakup fee and give it about $1 billion worth of spectrum.
  • It will also enter into a roaming agreement with Deutsche Telekom so that AT&T’s and T–Mobile’s customers can use each other’s networks.
  • Craig Moffett says AT&T’s spectrum needs aren’t so grave that it needs to make a large acquisition right away.

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