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AT&T, T-Mobile Deal Off

Hannah Madans |
December 19, 2011 | 4:31 p.m. PST

Associate News Editor

courtesy Creative Commons
courtesy Creative Commons
AT&T called off its $39 billion merger deal with T-Mobile.

The deal raised concerns with the Justice Department and the Federal Communications Commission that combining the companies would limit competition in the wireless industry and raise prices, according to The Daily Beast.

AT&T said the merger would expand their wireless network and help the industry and the consumers.

"The AT&T and T-Mobile USA combination would have offered an interim solution to this spectrum shortage," the company said in a statement. "In the absence of such steps, customers will be harmed and needed investment will be stifled."

Increased regulations and legal actions, however, forced AT&T to call off the deal. AT&T would have to spend $4 billion pre-tax as a fee to break up T-Mobile, according to the L.A. Times. The $4 billion in addition to the state and federal roadblocks caused AT&T to call off the deal.

 

Reach associate news editor Hannah Madans here.

 

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