AT&T’s nine-month battle to acquire T-Mobile ended Monday when the company said, that after a thorough review of its options, it had called off the merger.
It was clear from the beginning that the proposed mega merger would have major regulatory hurdles to clear.
As expected, competitor Sprint immediately voiced opposition to the whopping $39 billion deal, what Bloomberg in March called the biggest acquisition worldwide in more than a year. Sprint claimed it could seriously disrupt wireless competition in the country, and most industry experts agreed close scrutiny was needed to protect consumers from potential price hikes and less choices if the market became overly concentrated.
The proposal would have combined the nation’s second largest mobile phone carrier, AT&T, with the fourth largest.
While the proposed deal won support from a number of diverse groups, in the end, the actions by the Federal Communications Commission and the Department of Justice to block the transaction effectively killed it. In a statement, AT&T said that opposition does not change the realities of the U.S. wireless industry — that 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.
“AT&T will continue to be aggressive in leading the mobile Internet revolution,” said Randall Stephenson, AT&T chairman and CEO. “Over the past four years we have invested more in our networks than any other U.S. company. As a result, today we deliver best-in-class mobile broadband speeds — connecting smartphones, tablets and emerging devices at a record pace — and we are well under way with our nationwide 4G LTE deployment."
Stephenson said in the near term policymakers should allow the free markets to work so that additional spectrum is available to meet the immediate needs of the U.S. wireless industry, including expeditiously approving AT&T's acquisition of unused Qualcomm spectrum currently pending before the FCC. He said policymakers should also enact legislation to meet the nation’s longer-term spectrum needs.
“The mobile Internet is a dynamic industry that can be a critical driver in restoring American economic growth and job creation, but only if companies are allowed to react quickly to customer needs and market forces,” Stephenson said.
To reflect the break-up considerations due T-Mobile’s German parent company, Deutsche Telekom, AT&T will recognize a pretax accounting charge of $4 billion in the 4th quarter of 2011. Additionally, AT&T will enter a mutually beneficial roaming agreement with Deutsche Telekom.
A divided 3rd Circuit Court of Appeal reversed a Lafayette district judge’s ruling absolving the co-owner of a New Iberia accounting firm of liability in an embezzlement case.
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“I am only getting a little nervous about two projects — the proposed Sasol GTL facility [not the new ethylene plant] and the proposed G2X facility — both in Lake Charles. They need a hefty difference between oil and natural gas prices to make sense.”
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A Lafayette woman faces up to 20 years in prison for running up more than $1 million in unauthorized charges to her company credit card.
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State police say a 47-year-old Lafayette man, who collected more than $83,000 in disability benefits, is accused of operating two businesses out of his home at a time when he claimed he had no income.
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Money from the first and only settlement so far in a Louisiana flood board's lawsuit against dozens of energy companies will be placed in a special account dedicated to coastal restoration.
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The 59-41 Senate vote was one shy short of the 60 needed to clear the House-passed measure.
Spot bonuses to employees who go above and beyond on projects one of several reasons national mag calls BR-based biz bank a cool place to work.
The Director Search Committee interviewed the five men still in the running via video last week and is set to trim the field this week.
Telecom’s decision to halt deployment to more than 100 cities while it awaits net-neutrality rules appears to be little more than a temper tantrum.
Environmental (and political) junkies got a double fix when The Lens hosted a discussion between its environmental writer and the lead attorney in the levee board suit.
Follow The IND to hear Lens environmental reporter Bob Marshall's interview with Gladstone Jones, the lead attorney in the lawsuit against the oil and gas companies for coastal damages.
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Broussard & David set up shop at the corner of Jefferson and Vermilion.
in light of falling oil prices, Forbes asks, “Will there be more?”
Lake Charles lets Acadiana companies in on the action as our neighbor to the west prepares for unprecedented growth.
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A U.S. magistrate judge calls “garbage” on behavior of attorneys for Progressive Waste Solutions.
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Lake-area financial institutions seeing green.