Months of passionate lobbying couldn’t help AT&T to realize its dream of becoming the largest mobile phone operator in the United States by acquiring T-Mobile USA.
AT&T on Monday announced its decision to abandon its controversial $39 billion-bid for T-Mobile USA.
The takeover bid was announced in March, the bid encountered severe objections from the sides of rival like Verizon, federal agencies the U. S. Department of Justice and the Federal Communications Commission and many consumer groups over concerns that the takeover would harm customers by hurting competition in the market.
Now as the deal has collapsed, AT&T will have to take a charge of $4 billion, and begin a mutually beneficial roaming agreement with T-Mobile’s parent firm Deutsche Telekom AG.
AT&T said it would keep on leading the mobile Internet revolution by continuing to invest. The company said in statement, “To meet the needs of our customers, we will continue to invest. The mobile Internet is a dynamic industry that can be a critical driver in restoring American economic growth and job creation.”
Consumer groups have described AT&T’s decision to ditch its bid for T-Mobile as a victory for consumers.
Deutsche Telekom may now start finding a new buyer for its US business, or spin T-Mobile off as its own arm in an initial public offering.