AT&T to pay penalty fees of $4bn to Deutsche Telekom
AT&T and T-Mobile owner Deutsche Telekom withdrew their applications to the Federal Communications Commission (FCC) after the deal for the US company’s takeover of T-Mobile USA collapsed.
AT&T said it would record one-time costs of $4bn and would renew efforts to seek FCC approval "as soon as practical."
With opposition from the FCC and a lawsuit filed by the Justice Department opposing the deal, AT&T said it is preparing to pay penalty fees of $4bn to Deutsche Telekom for failing to close the deal by September 2012.
The FCC opposed the merger saying it would result in a massive loss of US jobs and investment and affect competition, while the Justice Department contended that it would lead to higher wireless prices for consumers and businesses.
The proposed deal, announced in March, would have made AT&T the largest telecom company in the US ahead of Verizon.