AT&T Pays its Own $6 Billion Cancellation fee with T-Mobile

Yesterday, AT&T confirmed they no longer wish to purchase out T-Mobile. This wasn't an outsider's decision to cancel the purchase such as congress. AT&T made the decision themselves to stop the process once and for all. It was known that if AT&T should break the deal, they will have to pay a $4 Billion dollar cancelation fee. Now, T-Mobile says the price is closer to $6 Billion.

 

The discrepancy comes in the form of spectrum that Ma Bell will be handing over to Deutsche Telekom’s U.S. division.  There is $3 billion in cash that is locked in, but the other $1 billion comes in the form of the value AT&T placed on the spectrum; T-Mobile is pegging its value at closer to $3 billion. 
-TechnoBuffalo's Sean P. Aune – Professional Tech Blogger

Overall AT&T lost this one as they spent a year into promoting this decision, which is now wasted time they could have been using to increase their own productivity. Now, that time is gone and T-Mobile walked away with AT&T's money. AT&T's decision to purchase T-Mobile was not for marketing purposes.

When the iPhone was first released, data usage increased by more than 100%, making it very difficult for AT&T to manage. They came to T-Mobile to by out their business in order to take over their towers, so they can handle such large amounts of data. Now that the deal is off, this only means AT&T may have built more towers and no longer needs T-Mobile's towers. 

Source:
http://www.technobuffalo.com/news/business/t-mobile-says-att-break-up-fee-is-closer-to-6-billion

Yousef Shanawany

Living in the heart of Silicon Valley, Yousef is a tech reviewer and editor and enjoys reading about tech news around the world. As his primary focus is the video game industry, he also loves reading about mobile and tablet news, as well as other new emerging hardware technologies. Yousef graduated from San Jose State University, earning his Bachelors degree in Software Engineering. He spends most of his time reading, gaming, and programming.