Casting thin-veiled aspersions the federal government s way, AT&T put within the towel last evening, scuppering its intends to purchase T-Mobile USA from Deutsche Telekom. $39 billion dollars AT&T would ve compensated the German-based company will stay in the coffers following the government blocked the purchase on grounds it might harm competition and result in cost increases for customers.
Because of its part, Deutsche Telekom s saying little within the collapse s wake, making general although vague pronouncements about its intends to shoreline up its flagging U.S. telecom resource.
(MORE: AT&T Drops Bid for T-Mobile, Criticizes Government for Opposition)
In the long run, we want more spectrum and network capacity, stated Deutsche Telekom Boss Rene Obermann inside a business call (via Reuters). We're focusing on that. But we won't speculate about any inorganic steps or deals.
The issue for T-Mobile lies using its lack of ability to snap up airwaves it claims are essential to stay competitive, though AT&T will start $1 billion in spectrum to T-Mobile included in the breakup process. Both AT&T and T-Mobile are in danger at this time, each searching for methods to improve network speeds as effectively as you possibly can as video and music downloads by tablet and smartphone proprietors increase wireless congestion. What s more, competitor Verizon Wireless Carrier just grabbed the $4 billion in spectrum regarded as a fallback for AT&T when the T-Mobile deal didn t happen.
For parent company Deutsche Telekom, analyst Jacques Abramowicz�with Silvia Quandt sees the AT&T-T-Mobile deal s failure relegating T-Mobile to a different customer-losing business as [Deutsche Telekom] confronts the fallout from Europe s debt crisis.
A minumum of one possible way ahead for T-Mobile USA will be a merger with Sprint, but that, too, could face intense governmental scrutiny and opposition.
Within the short term, T-Mobile USA will get more spectrum in Boston, Dallas and La, in addition to $3 billion in cash all from the deal s breakup but over time its prospects are under promising.
MORE:�AT&T Buyout or otherwise, Dish Really wants to Replace T-Mobile as America s fourth Favorite Wireless Company
Matt Peckham is really a reporter at TIME. Find him on Twitter at @mattpeckham, Google+ or�Facebook. You may also continue the discussion on TIME s Facebook page as well as on Twitter at @TIME.
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