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AT&T T-Mobile

Looks like FCC Chairman Julius Genachowski's request for a formal hearing on AT&T's proposed acquisition of T-Mobile may have had a bit of an effect. AT&T has announced that it and Deutsche Telekom have formally withdrawn their application related to the deal's approval that was submitted back in April. Interestingly, AT&T went on to say that because of the FCC's request for a hearing, it's added a $4 billion charge into its Q4 2011 financials to reflect the amount it would owe should the deal fail to be approved. That $4 billion breaks down into $3 billion in cash and $1 billion worth of spectrum.

All of this doesn't necessarily mean that AT&T and Deutsche Telekom are just giving up on the deal, though, as AT&T specifically says that the two companies are continuing pursuit of the sale of DT's assets. AT&T explains that it's withdrawn the FCC application in order to step back and reconsider all of its options with the government agency and will refile the application "as soon as practical." The carrier added that it plans to focus on winning the antitrust case that the U.S. Department of Justice has filed against it, either through the court case that's already pending or through alternate means.

Today's news is some of the biggest that we've seen come out of the AT&T-Mobile deal since it was announced back in March. Obviously the proposed acquisition is still very much on the table, but AT&T and Deutsche Telekom's moves give off the vibe that they're not quite as confident about the merger's approval as they may have once been. It'll be interesting to see how opponents of the acquisition react to today's news (I bet Sprint is having a happy Thanksgiving) and how the deal progresses going forward. As usual, we'll keep you up to date as the story continues to play out, so stay tuned!

AT&T and Deutsche Telekom Continue to Pursue Sale of DT's U.S. Wireless Assets

Companies Withdraw FCC Applications; AT&T Expects to Recognize $4 Billion Charge; Companies Focus on Gaining DOJ Approval

Dallas, Texas, November 24, 2011

On Nov. 22, 2011, the Federal Communications Commission indicated a proposed order was circulating that would designate for hearing the applications of AT&T Inc. and Deutsche Telekom AG For Consent To Assign or Transfer Control of Licenses and Authorizations, WT Docket No. 11-65.  On November 23, 2011, AT&T Inc. and Deutsche Telekom AG electronically withdrew without prejudice, as of that date, the pending applications listed in the Public Notice released by the Federal Communications Commission on April 28, 2011 in that proceeding.  Associated manual notification of withdrawal filings also are being made.

AT&T Inc. and Deutsche Telekom AG are continuing to pursue the sale of Deutsche Telekom’s U.S. wireless assets to AT&T and are taking this step to facilitate the consideration of all options at the FCC and to focus their continuing efforts on obtaining antitrust clearance for the transaction from the Department of Justice either through the litigation pending before the United States District Court for the District of Columbia, Case No. 1:11-cv-01560 (ESH) or alternate means.  As soon as practical, AT&T Inc. and Deutsche Telekom AG intend to seek the necessary FCC approval.

As a result of the FCC’s action, AT&T expects to recognize a pretax accounting charge of $4 billion ($3 billion cash and $1 billion book value of spectrum) in the 4th quarter of 2011 to reflect the potential break up fees due Deutsche Telekom in the event the transaction does not receive regulatory approval.

About AT&T

AT&T Inc. (NYSE:T) is a premier communications holding company and one of the most honored companies in the world. Its subsidiaries and affiliates – AT&T operating companies – are the providers of AT&T services in the United States and around the world. With a powerful array of network resources that includes the nation’s fastest mobile broadband network, AT&T is a leading provider of wireless, Wi-Fi, high speed Internet, voice and cloud-based services. A leader in mobile broadband and emerging 4G capabilities, AT&T also offers the best wireless coverage worldwide of any U.S. carrier, offering the most wireless phones that work in the most countries. It also offers advanced TV services under the AT&T U-verse® and AT&T | DIRECTV brands. The company’s suite of IP-based business communications services is one of the most advanced in the world. In domestic markets, AT&T Advertising Solutions and AT&T Interactive are known for their leadership in local search and advertising.

Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at http://www.att.com. This AT&T news release and other announcements are available at http://www.att.com/newsroom and as part of an RSS feed at www.att.com/rss. Or follow our news on Twitter at @ATT.

Via Reuters


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29 Reactions to this post

"Is the AT&T/T-Mobile deal done for good?"


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Tony Burgess what will happen to tmo subscribers if it goes under?
Anthony Ng Deal is done tmobile usa is done for
James Matthews Crash and burn T-Moble. You deserve it. Don't get me wrong. I've been with T-Mobile since Voicestream. But your service has been going down since this AT&T deal was annouced and if it fails then DT should just cut thier losses.
Jeremy Carlton The deal isn't done. They pulled the fcc app until they get approval from the doj. Then they'll reapply. It has until September 2012 at the very latest. If it never goes through, DT will likely divest to a bunch of small carriers at a loss.
Jason Vargas I kinda want the buyout to happen now. At first I was strongly against it but since the announcement tmobile has raised their prices and tiered their data. There slowly already becoming AT&T anyway so why not just get better coverage area and LTE. So now I really don't care what happens either way I'm sticking with Tmobile
Martin Hernandez I wouldn't want Att to own T-Mobile but I rather Att buy them instead of Verizon, Sprint or worst scenario Metro piece of shit. :(
Donna Armstrong T-mobile Google Merger it’s on its way. With the launch of Google music for T-mobile users I can honestly see Google stepping up to the plate and have a place in the company. Google bought Motorola because of software and some towers now it’s Time for a Google phone company! The only thing no iphones would be on this server because Google is all android!
William L Wells Dan d you should knw Wht your talking about before u make your self look like an ass on Facebook the nextel deal is totally diff than sprint buying tmo and thts not going to happen anyway you prob should have stopped after the one smart thing u said LOL
Sylbert Joseph Deal isn't over yet...
Max Wolf DOA.
Dan Daniel This is in the best interest of the consumer. It will save many mnay jobs from the TMO store to the manufacturers marketing and ad revenue. TMO will still have to sell to someone but not ATT I can see Metro stepping up. Sprint would be a disaster like when they bought Nextel, ruined that company same thing will happen to TMO and GSM with Sprint.
John Soliz I heard Google may buy T-Mobile if/when this falls through. Wouldn't that be awesome!
Erich Mokrzan Sprint sued at&t in the first place because they were supposed to buy t-mobile. Now that at&t is pulling out, sprint will try to buy t-mobile and this is gonna start all over
Pamela Howard Hershey Not to jonathan
Jonathan Steele I heard that DT is going to sell T-mobile USA to Sprint.
Dustin Martin They're not turning into a prepaid company, someone else will buy them if att does not.
Rodger Samiie' Myers Tmobile is done for then...4B for ATT is chumpchange for them...and DT becomes 4B richer to put a bandaid on the loses caused by tmobile...tmobile needs to find another buyer that the FCC will regulate which i believe will be a cable company
Roger DeOliveira Brian tmob well turn into a prepaid company
Andrew Veale T-Mo/Sprint plz kthx
Brian Fuller My question is, where does T-Mobile go from here. Obviously AT&T will man up and use the abundant spectrum they stocked piled to expand their 4G networks. But where does that leave a T-Mobile whose parent company has already said they have no interest in continuing the company
Bill Ready Do you guys work for TMOB and ATT or something?
Jeremy Oliver Lol its all bout location.. In the sticks where i live att is the best. Sprint close second. But way better data speeds with att. They all want your money. So in my book find the best carrier that works for you.
Jen Kash I am a current T-mobile customer and am generally satisfied. I had terrible service when I was with AT&T. Customer service was okay, but the reception was terrible! Forget trying to go in a basement, elevator, hospital, country road, certain corner of my house, basically anywhere...ughh. I was really disappointed to hear that they were merging with T-mobile. So this gives me a little hope...LOL.
Roger DeOliveira WHAT! this is horrible. You guys do realize that no matter what, T-mobile is DONE right?...take a look at how they are positioning pre-paid as a better deal than a regular post paid...Am I the only one that sees this? T-mobile is going to turn into a boost/virgin/pre-paid only company....In other words...I have to start looking for a new job now because they will no longer need front line employees. Thanks
?????? ????? AT&T Is Going To Become a Monopoly
Michael Perez I don't care what anyone says but AT&T is really good. They give me great service and great customer care. I mean when I had tmobile it was good until well last when I my service wasn't working well. It would have been nice to see a merge.
Hated Newsome We can hope! T-mobile is my carrier and I love the service and customer care. Best I have ever had and I ve had them all. I have 5 phone lines and a tablet and have no complaints




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