AT&T is dropping its US$39 billion bid to buy T-Mobiles U.S. wireless and instead will will enter a roaming agreement with Deutsche Telekom.
AT&T’s plan to buy T-Mobile USA was first announced in March. However, it met with opposition from the U.S. Department of Justice and the Federal Communications Commission.
“AT&T will continue to be aggressive in leading the mobile Internet revolution,” said Randall Stephenson, AT&T chairman and CEO in a press statement. “Over the past four years we have invested more in our networks than any other U.S. company. As a result, today we deliver best-in-class mobile broadband speeds — connecting smartphones, tablets and emerging devices at a record pace — and we are well under way with our nationwide 4G LTE deployment. To meet the needs of our customers, we will continue to invest.
To reflect the break-up considerations due Deutsche Telekom, AT&T will recognize a pretax accounting charge of US$4 billion in the fourtth quarter of 2011. Additionally, as mentioned, AT&T will enter a mutually beneficial roaming agreement with Deutsche Telekom.
— Dennis Sellers