AT&T Left With Tough Options Following T-Mobile Fallout

AT&T (NYSE:T) is faced with some tough decisions now that its T-Mobile purchase has fallen through. The cellular carrier had argued that it needed the airwaves that it would have acquired through the T-Mobile purchase in order to accommodate growing data usage. Now, the only solutions to its airwave problem will be costly and time-consuming.

Bloomberg Businessweek quoted Cowen & Co. analyst Colby Synesael, who said, “Without this deal, it is going to be difficult for AT&T. There’s no clear solution.”  Synesael continued by saying that the lack of bandwidth will certainly give the provider a competitive disadvantage against Verizon Wireless. AT&T has already faced criticism for dropped calls and spotty coverage, so the dissolution of the T-Mobile (PINK:DTEGY) purchase will certainly make it more difficult for AT&T to improve their service or gain new customers.

Earlier in the year, more wireless spectrum became available for purchase; however AT&T was focusing its efforts on acquiring T-Mobile and missed out on the auction. AT&T just officially dropped the T-Mobile deal yesterday after a nine month fight. The Justice Department sued to block the acquisition in August because it would limit competition in the industry.

Here’s how major telecom stocks are trading now:

AT&T, Inc. (NYSE:T): T shares recently traded at $29.24, up $0.12, or 0.41%. They have traded in a 52-week range of $27.20 to $31.94. Volume today was 1,713,703 shares versus a 3-month average volume of 29,026,300 shares. The company’s trailing P/E is 14.84, while trailing earnings are $1.97 per share. Get the most recent company news and stock data here >>

Sprint Nextel Corp. (NYSE:S): S shares recently traded at $2.36,. They have traded in a 52-week range of $2.10 to $6.45. Volume today was 1,690,579 shares versus a 3-month average volume of 59,629,200 shares. The company’s trailing earnings are $-0.84 per share. Get the most recent company news and stock data here >>

Verizon Communications Inc. (NYSE:VZ): VZ shares recently traded at $39.38, up $0.17, or 0.43%. They have traded in a 52-week range of $32.28 to $39.35. Volume today was 883,849 shares versus a 3-month average volume of 15,531,500 shares. The company’s trailing P/E is 15.83, while trailing earnings are $2.49 per share. Get the most recent company news and stock data here >>

MetroPCS Communications, Inc. (NYSE:PCS): PCS shares recently traded at $8.24, down $0.05, or 0.6%. They have traded in a 52-week range of $7.51 to $18.79. Volume today was 32,528 shares versus a 3-month average volume of 5,052,710 shares. The company’s trailing P/E is 13.46, while trailing earnings are $0.61 per share. Get the most recent company news and stock data here >>