Print 10 comment(s) - last by MrBlastman.. on Dec 20 at 9:42 AM

AT&T looked into selling off T-Mobile assets to other carriers like Leap Wireless International, Dish Network and MetroPCS Communications

AT&T and Deutsche Telekom's attempt to sell off T-Mobile assets to other carriers in order to boost AT&T's $39 billion acquisition have stalled, making the deal seem even less likely to pull through.

AT&T entered a $39 billion deal to buy T-Mobile from Deutsche Telekom in March 2011 after Deutsche Telekom decided it wanted to exit the U.S. market. AT&T was all for it because it could get its hands on T-Mobile's wireless spectrum. However, the U.S. Justice Department saw the deal as an anticompetitive act, and launched a lawsuit against the mobile companies in August. The U.S. Federal Communications Commission (FCC) later joined the battle against the AT&T/T-Mobile deal.

AT&T has done almost everything in its power to save the deal, from fighting the U.S. government in court to spending extra cash. It looked into selling assets worth more than 30 percent of the deal's value to Leap Wireless International Inc., as well as other assets to Dish Network Corp. and MetroPCS Communications Inc.

Despite these efforts, the likelihood of the U.S. Justice Department changing its mind about the deal is slim. AT&T and Deutsche Telekom have recognized the bleak possibility of a failed deal, and recently put the court battle with the Justice Department on hold in an effort to seek out alternatives to the deal. AT&T even withdrew its merger application that was sent to the FCC.

AT&T and Deutsche Telekom must come up with a plan by January 18 when they meet with regulators. A couple alternatives to the merger would be a joint venture between AT&T and T-Mobile, or AT&T could leave T-Mobile alone entirely and go after a smaller carrier. But it is unclear whether the companies will continue fighting for the merger or withdraw completely.

Source: The Wall Street Journal

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By Stuka on 12/19/2011 12:26:06 PM , Rating: 2
This is the first I've heard that Deutsche Telekom was shopping for a buyer. This leads me to believe that no matter what, within 5yrs, T-Mobile will be dead anyway. Is the justice department gonna block Verizon when they move to acquire it 2yrs from now? I doubt Sprint is gonna be able to front the cash for it. And if they part it out, it'll end up being picked up by affiliates of ATT anyway. What are we trying to accomplish here?

By MrBlastman on 12/19/2011 1:02:43 PM , Rating: 1
I will attempt a reply in simple speak:

We are trying to keep a bunch of greedy douchebags from jacking up our rates and making big profits off of us (when there is no reason to jack up the rates).

By Targon on 12/20/2011 6:20:11 AM , Rating: 2
And T-mobile will be GONE anyway, so all those T-mobile customers will be going to which carrier? Verizon, or AT&T? Sprint is also on the way down due to a lack of coverage across the country.

Yes, Sprint may survive, but not as a significant competitor to Verizon and AT&T. From the technical perspective, AT&T was looking for a way to increase the number of cell phone towers without being blocked by idiots in local government that don't want to allow new cell phone towers to be built, and the spectrum and other resources would be an added plus. For the most part, the purchase of T-mobile had very little to do with getting the T-mobile customers.

Just because you and others assume that it is all about greed, perhaps you should investigate the difficulty in expanding a network when you are being blocked on all levels while your competitor(Verizon) gets government subsidies for services that no one uses anymore.

By MrBlastman on 12/20/2011 9:42:52 AM , Rating: 2
I shed no tears for AT&T or Verizon. When they can continually jack up rates while simultaneously reducing services, I feel no pity for them. Their motives are clear.

“And I don't know why [Apple is] acting like it’s superior. I don't even get it. What are they trying to say?” -- Bill Gates on the Mac ads

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