AT&T has officially ditched its plans to acquire T-Mobile. The company will now be required to pay $4 billion to Deutsche Telekom for the botched deal, equaling $3 billion in cash and around $1 billion in spectrum. The two will; however, agree to some sort of roaming deal that allows devices on both carriers to use each others network.
AT&T issued an official statement on the matter on its blog, citing the actions of the FCC and DoJ as reasons for the decision:
“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 originally announced plans to merge with T-Mobile earlier this year. In addition to the government’s opposition of the deal, rival Sprint had also filed a “Petition to Deny” in an attempt to block the acquisition.