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AT&T abandons plan to acquire T-Mobile

Updated: 2011-12-20 09:39

(Xinhua)

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WASHINGTON - AT&T, the second largest wireless carrier in the United States, announced Monday that it has decided to drop its 39-billion-US-dollar acquisition of T-Mobile USA due to the US government's objections.

The company said it would have to take a 4-billion-dollar charge for ending the offer, adding that the failure of the deal does not change the shortage of airwaves.

"The mobile internet is a dynamic industry that can be a critical driver in restoring American economic growth and job creation, but only if companies are allowed to react quickly to customer needs and market forces," AT&T said.

Since the release of the merger on March 20, the acquisition has met with increasing opposition from rival mobile carriers, consumers and organizations.

The company's decision came months after the US Justice Department sued to block the deal in August, saying the merger of these two companies would result in tens of millions of consumers facing higher prices, fewer choices and lower quality products for their mobile wireless services.

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