CCTV.com - CNTV English - CCTV News


Homepage > News > Biz >

AT&T drops $39 bln bid for T-Mobile

12-20-2011 10:13 BJT

BEIJING, Dec. 20 (Xinhuanet) -- AT&T has dropped its 39 billion dollar bid to buy T-Mobile USA in the face of opposition from U.S. Justice Department and Federal Communications Commission.

AT&T, U.S. second-largest wireless carrier behind Verizon Wireless, will have to pay T-Mobile’s parent company Deutsche Telekom 4 billion U.S. dollars, which includes 3 billion dollars in cash as a breakup fee and 1 billion dollar worth of airwaves, known as spectrum that AT&T doesn't need for the continued rollout of its high-speed “4G” network.

It will also enter into a roaming agreement with Deutsche Telekom so that AT&T's and T-Mobile's customers can use each other's networks.

In pulling out, AT&T said the government's attempts to block the deal do not change the challenges of the wireless phone industry, which has been clamoring for more airwaves to expand.

AT&T will “continue to invest” in its own services, Randall Stephenson, AT&T chairman and CEO, said in a statement.

It will look elsewhere for the wireless airwaves to support the high demand for mobile data services and to compete with larger rival Verizon Wireless

Some analysts believe that failure of the bid could be a bigger problem for T-Mobile than for AT&T, because Deutsche Telekom has been eager to sell T-Mobile and isn't keen on investing more in the company, which has seen revenue decline slowly with the flight of higher-profit contract customers.

AT&T announced in March the purchase of T-Mobile from Deutsche Telekom of Germany. The U.S. Justice Department sued to block the merger on Aug. 31. And the Federal Communications Commission's (FCC) chairman also came out against it in November. The companies withdrew their FCC application last month.

Editor:Zhang Hao |Source: Xinhua

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program