AT&T will incur a pre-tax "breakup fee" of $4 billion in the fourth quarter and will enter into a roaming agreement with T-Mobile's parent company, Deutsche Telekom.
AT&T maintained that the deal would have benefited the U.S. wireless industry. But in recent months, it faced challenges from the Department of Justice and Federal Communications Commission, both of which found that the merger would not be in the public's interest. That opposition, however, does "not change the realities of the U.S. wireless industry," AT&T said.
"AT&T will continue to be aggressive in leading the mobile Internet revolution," Randall Stephenson, AT&T chairman and CEO, said in a statement. "To meet the needs of our customers, we will continue to invest."
AT&T Mobiliy President and CEO Ralph de la Vega was interviewed at the D9 conference, mostly focusing on AT&T's current service, as well as their hopeful acquisition of T-Mobile. In the clip above, Walt Mossberg hits Ralph with some criticism for the inability of AT&T to deliver good service to New York City customers in particular.
The FCC has opened public comment on the AT&T/T-Mobile merger, and now is the time to make your views known.
I have no idea whether any amount of public outrage will stop this merger, but we might as well try. Checking this morning, I saw that there are already almost 3,000 comments submitted, overwhelmingly opposing the merger.
AT&T set out its justifications for the merger in a 388-page filing with the FCC.
I'm sure that AT&T will soon rally some sort of Astroturf organization to write comments in support of the deal. It's interesting, really: the comments I could find in support of the merger come from groups and trade associations, while the comments against the merger generally come from individual Americans. It's clearly easier to get a lobbying organization in AT&T's corner than it is to get real people in support of this deal.