In response to heavy resistance from the U.S. government, AT&T killed the $39 billion bid that would have combined it with T-Mobile and created the nation’s largest wireless company. In spite of AT&T’s stepping down from their bid, they warned the necessity of the deal. As smartphone and tablet sales increase, so does the demand for data. Currently there is a nationwide wireless spectrum crunch.
“The AT&T and T-Mobile USA combination would have offered an interim solution to this spectrum shortage,” AT&T CEO Randall Stephenson said. The Federal Communications Commission and the Department of Justice sought to block the deal, fearing the megacompany that would result. Instead, AT&T and T-Mobile will enter into a roaming agreement to share wireless networks.
