November 24, 2011

AT&T Pulls T-Mobile Application

Vlad Savov, writing for The Verge:

“The FCC’s decision to request a formal administrative hearing into AT&T’s proposed takeover of T-Mobile USA has caused the US carrier to take drastic action: AT&T and Deutsche Telekom have just announced that they’re withdrawing their pending approval applications with the FCC.”

(Via Techmeme.)

AT&T claims they intend to refocus their deal effort rather than abandon it. Their accountants are laying the groundwork to pay for a failure, however.

AT&T agreed to a $3-billion failure clause when they entered into talks to buy Deutsche Telekom's ownership of T-Mobile. Their fourth-quarter numbers will reflect that charge.