AT&T Considering Joint Venture With T-Mobile If Acquisition Falls Apart
After withdrawing their acquisition approval application from the FCC and having to deal with the U.S. Justice Department, AT&T Inc. (NYSE:T) is weighing what to do with T-Mobile. One idea is that AT&T and T-Mobile parent company Deutsche Telekom would team up for a joint venture by putting their infrastructure together.
AT&T was originally planning to buy T-Mobile for $39 billion. The FCC argued that this would cause job losses and would not lead to cost savings for consumers. The FCC also believed that this would cause network inefficiency.
By combining their infrastructure and resources, both companies would benefit. AT&T would benefit by having access to T-Mobile’s wireless spectrum. T-Mobile would financially benefit from the second largest telecommunications company in the United States.
[WSJ]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry