AGGRESSIVE TELECOM AT&T has withdrawn its controversial bid for T-Mobile USA.
The potential deal raised questions and caused controversy whenever it went, and it was all but measured for its coffin when the Federal Communications Commission (FCC) released a scathing report about it.
Four months on and things have not progressed well. In a press release that laments a missed opportunity to expand American network capacity, the firm closed down the $39bn deal.
AT&T said that the US wireless industry is competitive, but failing. It said that there is an increased need for more spectrum, and explained that this is what the controversial deal would have bought the nation. Others were concerned that it would raise prices and diminish competition.
"AT&T will continue to be aggressive in leading the mobile Internet revolution," said Randall Stephenson, AT&T chairman and CEO as he ended the deal and called for changes from the government.
"To meet the needs of our customers, we will continue to invest. The mobile Internet is a dynamic industry that can be a critical driver in restoring American economic growth and job creation, but only if companies are allowed to react quickly to customer needs and market forces."
To settle the failed deal AT&T will take a charge of $4bn, and start a mutually beneficial roaming agreement with Deutsche Telekom, which owns T-Mobile USA. µ
'Some of us like the misery'
That'll surely affect its credit score