IT'S OFFICIAL: AT&T, T-Mobile deal is dead

Big Phone's colossal $4bn cockup concludes


AT&T's planned $39bn acquisition of T-Mobile USA from Deutsche Telekom is dead – and it's costing AT&T $4bn to kill it.

"AT&T Inc. said today that after a thorough review of options it has agreed with Deutsche Telekom AG to end its bid to acquire T-Mobile USA, which began in March of this year," the company said in a statement released on Monday afternoon.

The move was widely anticipated after the US Federal Communications Commission's decision less than one month ago to refer the matter to an administrative hearing – a rare move that signaled the death of the merger to most observers.

That sting of that governmental action was not lost on AT&T chairman and CEO Randall Stephenson, who snapped back in Monday's statement in favor of what he defined as free markets. "[Policymakers] should allow the free markets to work so that additional spectrum is available to meet the immediate needs of the U.S. wireless industry," he said.

After the FCC's decision, AT&T added to the widespread speculation – speculation that approached certainty, actually – about the deal's impending doom when it reported on November 24 that it planned a $4bn charge (its kill fee to Deutsche Telekom) in the fourth quarter in anticipation of the deal going sour.

That charge was also made official in ATT's Monday announcement. "To reflect the break-up considerations due Deutsche Telekom," the company reported, "AT&T will recognize a pretax accounting charge of $4 billion in the 4th quarter of 2011."

It appears that Netflix and RIM now have a deep-pockets competitor for the not-so-coveted award of "Worst business decision of 2012."


Other stories you might like

  • Everything you wanted to know about modern network congestion control but were perhaps too afraid to ask

    In which a little unfairness can be quite beneficial

    Systems Approach It’s hard not to be amazed by the amount of active research on congestion control over the past 30-plus years. From theory to practice, and with more than its fair share of flame wars, the question of how to manage congestion in the network is a technical challenge that resists an optimal solution while offering countless options for incremental improvement.

    This seems like a good time to take stock of where we are, and ask ourselves what might happen next.

    Congestion control is fundamentally an issue of resource allocation — trying to meet the competing demands that applications have for resources (in a network, these are primarily link bandwidth and router buffers), which ultimately reduces to deciding when to say no and to whom. The best framing of the problem I know traces back to a paper [PDF] by Frank Kelly in 1997, when he characterized congestion control as “a distributed algorithm to share network resources among competing sources, where the goal is to choose source rate so as to maximize aggregate source utility subject to capacity constraints.”

    Continue reading
  • How business makes streaming faster and cheaper with CDN and HESP support

    Ensure a high video streaming transmission rate

    Paid Post Here is everything about how the HESP integration helps CDN and the streaming platform by G-Core Labs ensure a high video streaming transmission rate for e-sports and gaming, efficient scalability for e-learning and telemedicine and high quality and minimum latencies for online streams, media and TV broadcasters.

    HESP (High Efficiency Stream Protocol) is a brand new adaptive video streaming protocol. It allows delivery of content with latencies of up to 2 seconds without compromising video quality and broadcasting stability. Unlike comparable solutions, this protocol requires less bandwidth for streaming, which allows businesses to save a lot of money on delivery of content to a large audience.

    Since HESP is based on HTTP, it is suitable for video transmission over CDNs. G-Core Labs was among the world’s first companies to have embedded this protocol in its CDN. With 120 points of presence across 5 continents and over 6,000 peer-to-peer partners, this allows a service provider to deliver videos to millions of viewers, to any devices, anywhere in the world without compromising even 8K video quality. And all this comes at a minimum streaming cost.

    Continue reading
  • Cisco deprecates Microsoft management integrations for UCS servers

    Working on Azure integration – but not there yet

    Cisco has deprecated support for some third-party management integrations for its UCS servers, and emerged unable to play nice with Microsoft's most recent offerings.

    Late last week the server contender slipped out an end-of-life notice [PDF] for integrations with Microsoft System Center's Configuration Manager, Operations Manager, and Virtual Machine Manager. Support for plugins to VMware vCenter Orchestrator and vRealize Orchestrator have also been taken out behind an empty rack with a shotgun.

    The Register inquired about the deprecations, and has good news and bad news.

    Continue reading

Biting the hand that feeds IT © 1998–2021