AT&T To Provide T-Mobile With 7-Year 3G Roaming Deal After Ending Bid

Posted Dec 20, 2011

AT&T Inc. (NYSE:T) is ending their bid for T-Mobile USA. AT&T had announced in March 2011 that they have offered $39 billion to acquire T-Mobile USA from Deutsche Telekom. However AT&T had a hard time getting through all of the legal hoops associated with the acquisition. This is what AT&T had to say about the government regulation:

“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. 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.”

Since the deal flopped, Deutsche Telekom will be receiving a cash payment of $3 billion, which will be going towards paying the company’s debt. T-Mobile will receive delivery licenses for about 128 market areas of AWS spectrum including 12 of the top 20 market. T-Mobile will also get a 7-year UMTS roaming deal. This includes support for HSPA on the 850 and 1900 MHz bands.