courtesy Creative Commons

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.