AT&T Scraps Their Bid To Acquire T-Mobile

AT&T has agreed with Deutsche Telekom AG to end their bid to acquire T-Mobile USA.After a long process that started back in March of this year, AT&T has given up trying to expand their network by acquiring T-Mobile USA. this decision was highly influenced by the actions of the Federal Communications Commission and the Department of Justice. this bid would have solved lots of problems caused by the competitive nature of the wireless industry, and now the company needs to find another way to compete.

AT&T said that they will continue to be competitive in leading the mobile Internet revolution,delivering the best-in-class mobile broadband speeds. Today, AT&T is still in the lead at “connecting smartphones, tablets and emerging devices at a record pace – and we are well under way with our nationwide 4G LTE deployment” (AT&T).

In order to meet the needs of customers, they’ll need policymakers to do a couple 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.

AT&T will have to recognize a pretax accounting charge of $4 billion in the 4th quarter of 2011, but according to various news sources, this was expected. It’s sad that they have to end their bid because in the end, the customers are the ones who are hurt the most. And I’m sure that this increased competition would’ve caused other wireless providers to lower their prices. AT&T has backed out for now, but maybe they’ll try this again sometime in the future. what do you think?

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AT&T Scraps Their Bid To Acquire T-Mobile

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