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AT&T Stops T-Mobile Merger Bid With the FCC
An anonymous reader writes Relationships are tough and it looks like AT&T and T-Mobile's has stopped before it even started. From the article: 'AT&T and T-Mobile have announced that they will remove their pending applications to the FCC for their merger bid. This comes after statements from the FCC chairman 'strongly opposing the merger'. In doing so, AT&T has agreed to pay T-Mobile 4 Billion US dollars to cover accounting and other costs that this may have caused. While AT&T would still like to merge, it is unlikely that they will gain antitrust clearance from the Department of Justice. It's the antitrust aspect that this is mostly about, in that AT&T has said that they want this move to free up the FCC to consider all options, and focus both AT&T and T-Mobile on the pending antitrust.'"
I expect T-Mobile will still be sold, just not to another major mobile phone provider. I wouldn't be surprised if CenturyLink ends up buying them; they are the largest telecom company without a mobile presence.
There's too many customers and too much spectrum for them to just be shut down. They're even still showing growth, just not as much as AT&T and Verizon (and not as much as Deutsche Telekom would like).
Gee, it's almost enough to make you believe that regulators can do their job once in a while. Maybe the FCC can run training seminars for the SEC...
Regardless, it's the right decision. Mergers of this scale are bad for everyone except one of the two CEOs. One guy gets a promotion. Meanwhile customers lose choice, the market loses competition, employees lose jobs (when they become redundant), and shareholders lose their investment (when half get bought out).
And that's before you factor in the (rightly) indignant T-Mobile customers, most of whom have sworn a solemn oath to do business with anyone but AT&T.