Well, the attempt by AT&T to monopolize GSM in the US has failed. In a statement just issued by AT&T they announced “that after a thorough review of options it has agreed with Deutsche Telekom AG to end its bid to acquire T-Mobile USA.”
They go on to try and place the blame at the feet of the FCC and claim the customer will be the one feeling the pain:
The actions by the Federal Communications Commission and the Department of Justice to block this transaction do not change the realities of the U.S. wireless industry. It is one of the most fiercely competitive industries in the world, with a mounting need for more spectrum that has not diminished and must be addressed immediately. The AT&T and T-Mobile USA combination would have offered an interim solution to this spectrum shortage. In the absence of such steps, customers will be harmed and needed investment will be stifled.
Of course the validity of their claims that the customer would benefit (in their initial filing) were found to be wanting as the FCC explained back in November.
AT&T now will have to spend $4 billion to Deutsche Telekom due to the terms of their attempted buy. The only bright point in this is that AT&T and Deutsche Telekom will enter into “a mutually beneficial roaming agreement with Deutsche Telekom” which will of course benefit the consumer as they travel to Europe, though the terms of that agreement have not been disclosed.
Picture: Associated Press
Source: AT&T Press Release