Skip to main content

AT&T kills T-Mobile merger plans, will pay Deutsche Telekom $4b breakup fee

AT&T kills T-Mobile merger plans, will pay Deutsche Telekom $4b breakup fee

/

AT&T has pulled out of its $39 billion bid to take over T-Mobile USA from Deutsche Telekom.

Share this story

att
att

AT&T has officially announced this afternoon that it has dropped its plans to merge with competitor T-Mobile. The news comes on the heels of rumors earlier today that the deal had all but fallen apart. The company will now pay a total of $4 billion to Deutsche Telekom as a breakup fee — $3 billion in cash plus about a billion in spectrum — and the two carriers will agree to a roaming deal which will allow devices for each network to work on the other (we've already heard some evidence of interoperability on the 1900MHz band). As expected, AT&T is citing recent FCC and DOJ resistance which called the proposed $39b takeover of T-Mobile into question as the main motivator for the decision. 

AT&T is taking a pretty aggressive tone in its announcement, echoing earlier concerns about meeting future needs for spectrum — not a surprise, considering that's been its claimed motivation all along:

The actions by the Federal Communications Commission and the Department of Justice to block this transaction do not change the realities of the U.S. wireless industry. It is one of the most fiercely competitive industries in the world, with a mounting need for more spectrum that has not diminished and must be addressed immediately. The AT&T and T-Mobile USA combination would have offered an interim solution to this spectrum shortage. In the absence of such steps, customers will be harmed and needed investment will be stifled.

The roaming deal could end up being an interesting opportunity for both carriers. We don't yet know the details of how it'll work or what bands or technologies will be covered, but T-Mobile could potentially end up with a viable LTE solution while AT&T may offload some HSPA+ traffic into T-Mobile's 1900 holdings. Additionally, this may not spell the end of Deutsche Telekom's attempt to sell off its US business — the company has made very clear that T-Mobile USA must fund its own growth, and with Dish taking a recent interest, there may still be FCC-friendly opportunities out there.

Today’s Storystream

Feed refreshed Two hours ago Striking out

A
Youtube
Andrew WebsterTwo hours ago
Look at this Thing.

At its Tudum event today, Netflix showed off a new clip from the Tim Burton series Wednesday, which focused on a very important character: the sentient hand known as Thing. The full series starts streaming on November 23rd.


A
The Verge
Andrew Webster4:28 PM UTC
Get ready for some Netflix news.

At 1PM ET today Netflix is streaming its second annual Tudum event, where you can expect to hear news about and see trailers from its biggest franchises, including The Witcher and Bridgerton. I’ll be covering the event live alongside my colleague Charles Pulliam-Moore, and you can also watch along at the link below. There will be lots of expected names during the stream, but I have my fingers crossed for a new season of Hemlock Grove.


J
Twitter
Jay PetersSep 23
Twitch’s creators SVP is leaving the company.

Constance Knight, Twitch’s senior vice president of global creators, is leaving for a new opportunity, according to Bloomberg’s Cecilia D’Anastasio. Knight shared her departure with staff on the same day Twitch announced impending cuts to how much its biggest streamers will earn from subscriptions.


T
Twitter
Tom WarrenSep 23
Has the Windows 11 2022 Update made your gaming PC stutter?

Nvidia GPU owners have been complaining of stuttering and poor frame rates with the latest Windows 11 update, but thankfully there’s a fix. Nvidia has identified an issue with its GeForce Experience overlay and the Windows 11 2022 Update (22H2). A fix is available in beta from Nvidia’s website.


A
External Link
If you’re using crash detection on the iPhone 14, invest in a really good phone mount.

Motorcycle owner Douglas Sonders has a cautionary tale in Jalopnik today about the iPhone 14’s new crash detection feature. He was riding his LiveWire One motorcycle down the West Side Highway at about 60 mph when he hit a bump, causing his iPhone 14 Pro Max to fly off its handlebar mount. Soon after, his girlfriend and parents received text messages that he had been in a horrible accident, causing several hours of panic. The phone even called the police, all because it fell off the handlebars. All thanks to crash detection.

Riding a motorcycle is very dangerous, and the last thing anyone needs is to think their loved one was in a horrible crash when they weren’t. This is obviously an edge case, but it makes me wonder what other sort of false positives we see as more phones adopt this technology.


A
External Link
Ford is running out of its own Blue Oval badges.

Running out of semiconductors is one thing, but running out of your own iconic nameplates is just downright brutal. The Wall Street Journal reports badge and nameplate shortages are impacting the automaker's popular F-series pickup lineup, delaying deliveries and causing general chaos.

Some executives are even proposing a 3D printing workaround, but they didn’t feel like the substitutes would clear the bar. All in all, it's been a dreadful summer of supply chain setbacks for Ford, leading the company to reorganize its org chart to bring some sort of relief.


E
TikTok
Spain’s Transports Urbans de Sabadell has La Bussí.

Once again, the US has fallen behind in transportation — call it the Bussí gap. A hole in our infrastructure, if you will.


J
External Link
Jay PetersSep 23
Doing more with less (extravagant holiday parties).

Sundar Pichai addressed employees’ questions about Google’s spending changes at an all-hands this week, according to CNBC.

“Maybe you were planning on hiring six more people but maybe you are going to have to do with four and how are you going to make that happen?” Pichai sent a memo to workers in July about a hiring slowdown.

In the all-hands, Google’s head of finance also asked staff to try not to go “over the top” for holiday parties.


E
External Link
Insiders made the most money off of Helium’s “People’s Network.”

Remember Helium, which was touted by The New York Times in an article entitled “Maybe There’s a Use for Crypto After All?” Not only was the company misleading people about who used it — Salesforce and Lime weren’t using it, despite what Helium said on its site — Helium disproportionately enriched insiders, Forbes reports.