AT&T Officially Scraps Plans for T-Mobile Acquisition
AT&T (NYSE:T) has dropped its $39 billion bid for T-Mobile USA after facing fierce government objections to the proposed acquisition, which would have seen the nation’s second- and fourth-largest wireless networks merge to overtake Verizon Wireless (NYSE:VZ) as the largest wireless network in the country.
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AT&T said Monday that the actions of the government to block the deal in no way change the challenges faced by the wireless industry, which it says requires more airwaves to expand.
The U.S. Justice Department sued to block the merger on August 31, saying it would reduce competition in the industry, which currently consists of only four major carriers, including Sprint (NYSE:S), and would lead to higher prices for consumers.
AT&T and T-Mobile withdrew their applications last month to the Federal Communications Commission after its chairman also opposed the deal, but were until now thought to be considering sales to decrease T-Mobile’s assets in hopes of making the merger less threatening in the eyes of the FCC.
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