AT&T Drops It’s Bids For T-Mobile

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AT&T has just announced that it has withdrawn it’s bid to buy out T-Moible. They have made this decision after a very thorough review of their options. They began there biding in March of this year. Randall Stephenson, AT&T chairman and CEO, had to say this about the announcement:

“AT&T will continue to be aggressive in leading the mobile Internet revolution, Over the past four years we have invested more in our networks than any other U.S. company. As a result, today we deliver best-in-class mobile broadband speeds – connecting smartphones, tablets and emerging devices at a record pace – and we are well under way with our nationwide 4G LTE deployment”.

If they had bought out T-Mobile they would have gotten more spectrum, which they very much so need. However, AT&T will counties to look for more spectrum. They also are asking the regulators for 2 man things. The first is to allow the free markets to work so that additional spectrum is available to meet the immediate needs of the U.S. wireless industry. The second would be to enact legislation to meet our nation’s longer-term spectrum needs. We will have to see what the regulators and policy makers say, hopefully they will find more spectrum from somewhere. For more info see the press release below.

 

Press Release

AT&T Ends Bid To Add Network Capacity

Through T-Mobile USA Purchase

Company Reaffirms Its Commitment to Mobile Broadband Leadership

DallasTexasDecember 19, 2011

AT&T Inc. (NYSE: T) said today that after a thorough review of options it has agreed with Deutsche Telekom AG to end its bid to acquire T-Mobile USA, which began in March of this year.

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.

“AT&T will continue to be aggressive in leading the mobile Internet revolution,” said Randall Stephenson, AT&T chairman and CEO.  “Over the past four years we have invested more in our networks than any other U.S. company. As a result, today we deliver best-in-class mobile broadband speeds – connecting smartphones, tablets and emerging devices at a record pace – and we are well under way with our nationwide 4G LTE deployment.

“To meet the needs of our customers, we will continue to invest,” Stephenson said. “However, adding capacity to meet these needs will require policymakers to do two things. First, in the near term, they should allow the free markets to work so that additional spectrum is available to meet the immediate needs of the U.S. wireless industry, including expeditiously approving our acquisition of unused Qualcomm spectrum currently pending before the FCC.  Second, policymakers should enact legislation to meet our nation’s longer-term spectrum needs.

“The mobile Internet is a dynamic industry that can be a critical driver in restoring American economic growth and job creation, but only if companies are allowed to react quickly to customer needs and market forces,” Stephenson said.

To reflect the break-up considerations due Deutsche Telekom, AT&T will recognize a pretax accounting charge of $4 billion in the 4th quarter of 2011.  Additionally, AT&T will enter a mutually beneficial roaming agreement with Deutsche Telekom.

*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.

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