AT&T Drops Plan To Merge With T-Mobile

Faced with an expensive fight, AT&T has abandoned its attempt to merge with T-Mobile. Instead of completing the $39 billion deal, AT&T will pay Deutsche Telecom a $4 billion breach of contract fee. More here from Telecoms Europe. It will also continue to work with Deutsche Telecom through a roaming arrangement for its customers. A statement from AT&T chairman and CEO Randall Stephenson cited problems with the FCC and DOJ as reasons for failure to complete the deal.

Said representatives of the Department of Justice in part:

“This result is a victory for the millions of Americans who use mobile wireless telecommunications services.  A significant competitor remains in the marketplace and consumers will benefit from a quick resolution of this matter without the unnecessary expense of taxpayer money and government resources.” 

Here's a linkto the Department of Justice news release.