A Failed T-Mobile Acquisition Could Cost AT&T $6B
Reuters reports that AT&T will owe a whopping $6 billion, including $3 billion in cash, to T-Mobile’s parent company Deutsche Telekom, should the deal fail to receive approval. Reuters’ sources chose to remain anonymous, but did say that the $6 billion would include giving Deutsche Telekom $1 billion in a roaming agreement and $2 billion in spectrum.
A number of different people raised their concerns with the deal at Wednesday’s congressional hearing, including democratic Wisconsin Sen. Herb Kohl, who said the deal could create a “duopoly,” and Sprint CEO Dan Hesse, who said (as promised) that the deal would cause “irreparable harm to competition.”
It’ll be a while before the verdict is in, as the Justice Department and the FCC have requested further information from the carriers before making their decision. Until then, all of you T-Mobile customers have some choices to make: If the deal passes will you become part of AT&T’s potential 130 million subscribers, jump ship to Verizon, or place a wallet-shaped vote in underdog Sprint’s ballet box?
[via CNET]