Sprint, the third largest carrier in the U.S., has expressed its extreme happiness over AT&T's decision to drop its bid for T-Mobile, the fourth largest carrier in the nation.
The company had been one of the most vocal opponents of the move, which would have left AT&T with 120 million subscribers. Verizon, the top CDMA carrier, has 107 million subscribers. Sprint has 54 million subscribers and would have been left behind as a "duopoly" took over, argued the company.
AT&T had bid $39 billion to take over T-Mobile, all of its 35 million subscribers and all of its spectrum, which would have been used to quickly expand AT&T's infrastructure and availability.
After the FCC and DOJ both began lawsuits against AT&T for anti-trust issues, the carrier decided today to drop the bid. In doing so, they will have to pay a $4 billion breakup fee to T-mobile parent Deutsche Telekom.
Statement from Vonya McCann, Sprint SVP of government affairs:
Earlier today, AT&T terminated its definitive merger agreement with Deutsche Telekom to acquire T-Mobile USA. This is the right decision for consumers, competition and innovation in the wireless industry.
From the beginning, Sprint has stood with consumers who spoke loudly and clearly that AT&T's proposed takeover of T-Mobile would create an undeniable duopoly that would have resulted in higher prices, less innovation and fewer choices for the American consumer.
Sprint commends the Department of Justice, the Federal Communications Commission and the bi-partisan group of state attorneys general who gave voice to the concerns of consumers across the country. We look forward to competing fiercely in the robust, competitive market that exists today and continuing to deliver the world class service and products that consumers have come to expect from Sprint
AT&T had bid $39 billion to take over T-Mobile, all of its 35 million subscribers and all of its spectrum, which would have been used to quickly expand AT&T's infrastructure and availability.
After the FCC and DOJ both began lawsuits against AT&T for anti-trust issues, the carrier decided today to drop the bid. In doing so, they will have to pay a $4 billion breakup fee to T-mobile parent Deutsche Telekom.
