AT&T, T-Mobile Deal Collapses Amid Fierce Backlash - Spokane, North Idaho News & Weather KHQ.com

AT&T, T-Mobile Deal Collapses Amid Fierce Backlash

DALLAS (AP) - AT&T says it is ending its $39 billion bid to buy T-Mobile USA after facing fierce government objections.

The cellphone giant said Monday that the actions of the government to block the deal do not change the challenges of the wireless phone industry, which it says requires more airwaves to expand.

AT&T's purchase of T-Mobile from Deutsche Telekom of Germany would have made it the largest cellphone company in the U.S. AT&T is currently the country's second-largest wireless carrier, while
T-Mobile is the fourth-largest.

The Justice Department sued to block the merger on Aug. 31, saying it would reduce competition and lead to higher prices.

Last month, the companies withdrew their application to the Federal Communications Commission after its chairman also opposed the deal.

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