AT&T's Efforts to Sell Off T-Mobile Assets Stall
December 19, 2011 11:18 AM
comment(s) - last by
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
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.
The Wall Street Journal
This article is over a month old, voting and posting comments is disabled
12/19/2011 1:02:43 PM
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).
12/20/2011 6:20:11 AM
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.
12/20/2011 9:42:52 AM
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.
"Well, there may be a reason why they call them 'Mac' trucks! Windows machines will not be trucks." -- Microsoft CEO Steve Ballmer
AT&T Has $8.8B Extra to Convince Gov't, Rivals to Close T-Mobile Deal
December 8, 2011, 9:02 AM
AT&T Eyes Deals to Chop up T-Mobile, Amid FCC Scrutiny
November 30, 2011, 6:58 PM
AT&T Fights DOJ to Engulf T-Mobile, Gain U.S. Monopoly on GSM
September 2, 2011, 11:22 AM
DOJ Files Paperwork to Kill AT&T/T-Mobile Merger; AT&T, Sprint Respond
August 31, 2011, 11:21 AM
UK Drivers Must Now Give Their Cell Phones to Police After a Crash
July 29, 2014, 4:37 PM
Ford to Switch 3,300 Employees from BlackBerries to Apple iPhones by Year's End
July 29, 2014, 2:08 PM
Quick Note: Hilton Hotels to Use Smartphones as Room Keys, for Check-In/Check-Out
July 29, 2014, 12:53 PM
Verizon Wireless to Receive Exclusive "HTC One (M8) for Windows" Smartphone
July 29, 2014, 9:13 AM
Report: Microsoft's Chinese Offices Raided
July 28, 2014, 9:16 PM
Cell Phone Unlocking Bill Heads to President Obama's Desk
July 28, 2014, 11:58 AM
Most Popular Articles
Sony's Xperia Z3 Gets Detailed in Leaked Photos
July 25, 2014, 2:30 PM
Report: Apple to Launch 12" Retina MacBook Air, 4K Desktop Product Later this Year
July 24, 2014, 4:33 AM
Pentagon's Priciest Project, F-35, Misses International Debut
July 25, 2014, 10:18 AM
Ford's Extensive Use of Aluminum in '15 F-150 Results in $395 Increase for Base Models
July 28, 2014, 3:02 PM
4.7" Samsung Galaxy Alpha Smartphone Coming Next Month
July 24, 2014, 8:28 AM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information