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.