« | »

WH Wins, AT&T Gives Up On T-Mobile Merger

From The Hill:

AT&T abandons T-Mobile merger

By Brendan Sasso – 12/19/11

AT&T abandoned its $39 billion bid to buy T-Mobile on Monday, acknowledging that it couldn’t overcome opposition from the Obama administration.

Both the Justice Department and the Federal Communications Commission (FCC) had moved to block the deal, arguing the merger of the second and fourth largest wireless carriers would stifle competition.

Meanwhile, T-Mobile will almost certainly have to go bankrupt if they aren’t allowed to merge with another company. Which will surely cut down on the competition that the White House pretends to be so concerned about.

AT&T has agreed to pay T-Mobile’s parent company, Deutsche Telekom, a $4 billion breakup fee.

So now at least they will know how their customers feel when they have to break a contract.

"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," AT&T said in a statement. "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."

This could well be all about spectrum. Spectrum for LightSquared, which is a company that both Obama and George Soros had invested in. Which, as we have noted, the White House has even told generals to lie about.

AT&T has strongly opposed LightSquared. So they were just asking for trouble from such a crony capitalist administration.

Dozens of Democratic and Republican lawmakers wrote letters urging regulators to approve the deal, and labor unions lobbied in favor of it

So you know there were some very powerful forces at work here. Probably Chicago-style payback.

This article was posted by Steve on Tuesday, December 20th, 2011. Comments are currently closed.

One Response to “WH Wins, AT&T Gives Up On T-Mobile Merger”

  1. canary says:

    Consumer affairs story telling on the issue and irony of ads. Can’t figure out if the unions are happy or unhappy and the loss of jobs.


« Front Page | To Top
« | »