AT&T announced today that it will no longer pursue its acquisition of T-Mobile US. The wireless carrier faced an uphill battle after both the Department of Justice and the Federal Communications Commission opposed the deal. Rather than throw more money at a losing cause, AT&T will pay Deutsche Telecom a $4 billion fee and walk away from the deal.
After AT&T announced its decision, Sprint issued a press release that supported this move and praised the government for blocking this deal. Sprint’s statement reads:
“Earlier today, AT&T terminated its definitive merger agreement with Deutsche Telekom to acquire T-Mobile USA. This is the right decision for consumers, competition and innovation in the wireless industry.
“From the beginning, Sprint has stood with consumers who spoke loudly and clearly that AT&T’s proposed takeover of T-Mobile would create an undeniable duopoly that would have resulted in higher prices, less innovation and fewer choices for the American consumer.
“Sprint commends the Department of Justice, the Federal Communications Commission and the bi-partisan group of state attorneys general who gave voice to the concerns of consumers across the country. We look forward to competing fiercely in the robust, competitive market that exists today and continuing to deliver the world class service and products that consumers have come to expect from Sprint.”
Now that the deal is off the table, the future of T-Mobile and the expansion of AT&T’s 4G network is uncertain. You can read our analysis of this situation and please use the comments to share your opinions on this decision.
[Via Sprint]