AT&T Kills T-Mobile Merger, Now Faces A Hefty $4 Billion FeeNow if you thought your breakup cost you a lot then prepare to be humbled. AT&T has officially announced that it has drop plans to merge with its competitor T-Mobile USA. As you would have figured, the announcement of AT&T possibly engulfing T-Mobile USA had resulted in customer losses as well as decrease in sales of T-Mobile phones during the period of uncertainty. And now it's time for AT&T to pay up.
AT&T officially announces death of T-Mobile USA merger deal, faced with hefty bill
As part of the agreement between AT&T and T-Mobile USA's parent company Deutsche Telekom, if the merger falls apart AT&T would need to pay DT a total of $4 billion - $3 billion in cash and around $1 billion in spectrum. AT&T has been quite vocal about the announcement and their concerns of the future need for spectrum:
"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."
