T-Mobile will not be bought by AT&T. Sub-headline: Opposition from the Obama administration over competition and job losses proves too big to overcome. The companies say more capacity to handle growing mobile usage is needed. Sprint is a winner; shares jump.
I guess we will never see this product realized:
AT&T and T-Mobile called off their $39-billion merger late today, a move that could cost AT&T $4 billion before taxes in cancellation costs, trim revenues for investment banks by $150 million and give Sprint Nextel another shot at becoming a true player in the mobile market.
The AT&T’s purchase of T-Mobile from Germany’s Deutsche Telekom would have made it the nation’s largest cellphone company. AT&T is now the country’s second-largest wireless carrier; T-Mobile is the fourth-largest. But it’s not going to happen because critics said the deal was anti-competitive.
Sprint shares jumped 6%, or 13 cents, to $2.29 because investors bet the company would be better able to compete against AT&T and Verizon Wireless, the joint venture of Verizon Communications and British telecom giant Vodaphone.
