AT&T and T-Mobile USA withdraw merger application

AT&T and T-Mobile logos The combined mobile phone company would be the biggest in the US

Related Stories

US telecoms giant AT&T and Deutsche Telekom have cast doubt over the $39bn (£25bn) sale of T-Mobile USA by withdrawing their merger application to the industry regulator.

AT&T also said it would include a $4bn charge in its fourth-quarter accounts to cover any potential compensation due if the deal does not go ahead.

The US Justice Department moved to block the sale at the end of August.

The two firms said they would focus on clearing the deal with the government.

Seeking approval

AT&T agreed to buy T-Mobile USA from Deutsche Telekom in March, aiming to create the largest US wireless network.

However, the government has said the merger would lead to higher prices and restrict choice, and has requested a court order to block it.

As a result, the two firms have withdrawn their application with the Federal Communications Commission (FCC).

AT&T T-Mobile

Mobile customers

98.6 million

33.6 million

Revenue (2010)

$53.5bn

$18.7bn

Standing in US

Second biggest

Fourth biggest

This would allow them to "focus their continuing efforts on obtaining antitrust clearance for the transaction from the Department of Justice", the companies said.

They would then focus on seeking approval from the FCC, they added.

The deal needs the approval of both the Justice Department and the FCC to go ahead.

AT&T's bid to buy T-Mobile would give the US telecoms firm about 43% of the US mobile phone market.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.