AT&T said on Monday that it would drop its $39 billion bid to buy Deutsche Telekom's T-Mobile USA in the face of regulatory pressure.
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, Dallas-based AT&T said in a statement. 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 said it would share roaming with Deutsche Telekom and will pay the German company a $4 billion breakup fee, to be reflected in its fourth quarter earnings.
The company had sought to sell assets to Leap Wireless to save the deal.
Shares of AT&T were trading around $28.74 on Monday.