• Your favorite








    , and
  • AT&T Withdraws T-Mobile Merger Application From FCC

    The original iPhone U.S. wireless carrier, AT&T is starting to believe that the planned merger with T-Mobile is headed for trouble. AT&T announced that it has withdrawn its joint application for FCC approval of what was going to be a $39 billion deal. Previously, the two companies had said that they were going to focus efforts on getting approval from the Justice Department for the merger. But that seems like a stretch since the Department of Justice sued AT&T last August, claiming the merger was anti-competitive and in violation of antitrust laws.

    As of right now, AT&T said it has plans to book a $4 billion charge in the 4th quarter in preparation for the deal failing and also due to having to make a large payment (of up to $6 billion) to T-Mobile, which was guaranteed to the company as a break-up fee. It seems that AT&T auditors want the company to take the financial hit now and the action that AT&T announced today is a sign that the company has low confidence in convincing the FCC or the Justice Department that the deal is good for consumers.

    Previous arguments that AT&T used when bringing up the merger included the creation of many new US jobs. The U.S. government claimed that the merger would result in a massive job loss and higher prices for cellular service. The FCC and the Justice Department weren’t the only opposition that AT&T and T-Mobile would have to face. Competitors were also against the merger, especially Sprint. AT&T was the first company to offer Apple’s iPhone, which has now opened up to Sprint and Verizon. Despite the popular U.S. smartphone being offered on multiple U.S. carriers, AT&T still remains the most popular wireless carrier for the iPhone.

    Does this disappoint many of you T-Mobile users? How do you feel about the possibility of no merger happening? Share any thoughts below!

    Source: AT&T
    This article was originally published in forum thread: AT&T Withdraws T-Mobile Merger Application From FCC started by Akshay Masand View original post
    Comments 22 Comments
    1. sziklassy's Avatar
      sziklassy -
      Quote Originally Posted by cmwade77 View Post
      Ok, I am not sure where everyone is getting better coverage on AT&T than T-Mobile
      Everywhere I have ever been. I spend a lot of time in southern California, and in Iowa for school. It seems TMO can't get good reception inside building almost anywhere I go. When you use a phone as your main line, reception indoors is pretty important.

      I ask you this; do you travel? Where do you live? How far outside of that zone do you generally go? I don't doubt TMO is great for you. I also don't doubt that the majority of users speak the truth when they say their experience simply wasn't good.
    1. n00neimp0rtant's Avatar
      n00neimp0rtant -
      I have T-Mobile on my unlocked iPhone 4 and I am so happy this deal did not go through. I could not afford to have an iPhone on any other carrier; T-Mobile's prices, policies, and customer care far surpass that of any other carrier. We have 5 lines on our plan: we all share 550 Whenever minutes with unlimited nights/weekends/T-Mo to T-Mo calling, unlimited texting, and 3 of our lines have unlimited data. Our entire monthly bill is less than $110 every month. Of course, we can't use 3G data, but T-Mobile's EDGE is actually fast enough to stream live TV over-the-air with my Slingbox, and that's good enough for me. Let's not forget all of AT&T's policy changes since they first got the iPhone that directly affect iPhone users:
      • Unlimited data no longer an option for new customers
      • Data speed throttling for those lucky enough to still have unlimited data
      • ETFs increased by almost 100% for smartphone users
      • All texting plans except for unlimited removed shortly after unveiling of iMessage
      • "Bait-and-switch" with 3G iPad's advertised flexible data plans
      When I got this iPhone, I signed up for AT&T. After 2 months, I canceled and went back to T-Mobile. That precious, elusive 3G I had dreamed of having for years turned out to be totally worthless with only 2GB of bandwidth. Sure, I had the data speed to watch Hulu on-the-go now, but I would end up tearing through my monthly limit in a week. I'm far happier on T-Mobile, and that will never change.