Feeds

AT&T gives up on T-Mobile pre-merge purge

Telco mulled flogging assets to save deal

The Essential Guide to IT Transformation

Talks to sell off some of AT&T's assets to make its merger with T-Mobile USA seem a little less anticompetitive have reportedly stalled.

People familiar with the matter told the Wall Street Journal that one of the options to get regulatory approval for the deal - offloading assets to make the end company less of a behemoth - has gone cold.

Both the Federal Communications Commission (FCC) and the Department of Justice have raised competition concerns over the alliance, leading AT&T and Deutsche Telekom, parent of T-Mobile USA, to go back to the drawing board.

The companies have withdrawn their application for approval to the FCC and asked the DoJ for an extra month to work on their proposed marriage. However, the aforementioned moles said the chances of the full blown merger going ahead are now pretty slim.

Another option open to the telcos, if they want to push ahead with some sort of deal, is to start a joint venture. Alternatively, AT&T could abandon its designs on T-Mobile USA and take a stake in a smaller carrier.

AT&T is pushing the deal because it wants to get its hands on some of T-Mobile's wireless spectrum, fast becoming a rare commodity. But the businesses need the green light from both the FCC and the DoJ to go ahead, which is not looking likely after the DoJ took the two to court and the FCC issued a damning report on the deal.

The companies have to come up with something to placate the regulators by 18 January, at which point they'll be facing the DoJ in court to fight or withdraw the merger deal. ®

Boost IT visibility and business value

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.