In a stunning display of bowing to what just about everyone else wants, AT&T has announced they won’t merge with T-Mobile USA. This isn’t too much of a shock after the FCC tutted at them last month. Don’t cry for T-Mobile though. Thanks to a clever agreement, they’re walking away from the table with four billion dollars, as well as a massive chunk of wireless spectrum and a sweetheart of a roaming agreement on AT&T’s massive network.
Also coming out ahead are DISH network and Sprint. Both companies were vocal opponents of the merger and are now trading higher than usual. Conversely, AT&T has only gone down about one percent so far. So aside from the fiscal hit, they’re not doing too shabby. T-Mobile USA’s fate is up in the air, but no other buyer would have the kind of impact AT&T would. I honestly think the US market is a better place without AT&T-Mobile locking up a huge segment of the market.
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