Thursday, November 24, 2011

AT&T to pay $4Billion to T-Mobile

AT&T said last night that it will take a $4 billion accounting charge in the fourth quarter to cover a breakup fee to T-Mobile should the deal fail to gain regulatory approval. At&t has been struggling for few months to obtain clearance certificate from department of justice regarding its acquisition of T-Mobile USA.

AT&T and T-Mobile parent Deutsche Telecom also said they've withdrawn their pending approval applications to the FCC "to facilitate the consideration of all options at the FCC.

In a briefing with reporters at the time, FCC officials said the merger would create an "unprecedented" level of concentration in the wireless market and that it was impossible to see how the deal could serve the public.


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