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Post merger flop, what’re AT&T’s spectrum options?
Wednesday, 21 December 2011 06:32

AT&T Inc. has put paid to its intentions to buy Deutsche Telekom AG’s T-Mobile USA in the face of continuous resistance from both the FCC and the Justice department. Now, after the $39 billion bid fell through, the company is left with few options for boosting its network capacity by acquiring additional spectrum. The negotiated breakup fee with Deutsche Telekom would see AT&T handing over $1 billion worth of spectrum to T-Mobile. With Verizon Wireless snapping up $4 billion worth of spectrum from a syndicate of cable companies recently, AT&T has that door shut in its face, and now, possibly the best way out for it would be to buy spectrum from cable provider Dish Network Corp. - or attempt to purchase the company outright, though such a deal could meet the same regulatory hurdles, as per Jonathan Atkin, an RBC Capital Markets analyst. AT&T Inc. CEO Randall Stephenson had stated at an event in New York this month it may take Congress and the FCC as long as six years to reach an agreement to auction off new spectrum licenses.

 

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