AT&T finally gave up it’s bid to purchase T-Mobile USA after facing huge opposition from the FCC, DOJ, Sprint and others. It will take a $4 Billion charge during the 4th quarter of 2011. It will also enter a favorable roaming agreement with T-Mobile USA and turn over spectrum. While this is good and bad news for all parties involved, the $4 billion AT&T is paying will go to T-Mobile’s parent company Deutsche Telekom which has repeatedly said it will no longer invest in it’s US company. Unless T-Mobile can come up with something it may not last very long facing the competitive atmosphere of the US. It has very limited spectrum for it’s 4G network and it far behind in rolling out the spectrum it does have.
Source: CNN
