AT&T will give Deutsche Telekom a break-up fee and benefits worth about $6 billion if regulators reject the proposed takeover of the German company's U.S. business, Deutsche Telekom said on Friday.
In March, when the $39 billion deal was disclosed, the companies said AT&T would pay the German group a record break-up fee of $3 billion, but they did not put a value on other parts of the agreement.
"$3 billion would flow directly in cash, but Deutsche Telekom would also receive spectrum and a national roaming agreement," a Deutsche Telekom spokesman said.
Top executives of AT&T Inc. and T-Mobile insisted on Wednesday their proposed merger would benefit consumers and rejected criticisms that it would stifle innovation.
AT&T Chief Executive Randall Stephenson and T-Mobile USA CEO Philipp Humm appeared before the Senate Judiciary's antitrust subcommittee to defend their deal, which would concentrate 80 percent of U.S. wireless contract customers in just two companies -- AT&T/T-Mobile and Verizon Wireless.
The National Association of Broadcasters (NAB) Monday filed with the FCC a study by former FCC official Uzoma Onyeije questioning the existence of a spectrum crisis. The paper, entitled "Solving the Capacity Crunch: Options for Enhancing Data Capacity on Wireless Networks," suggests alternative solutions to auctioning broadcasting spectrum to help alleviate mobile broadband congestion. Onyeije concludes that "the impending 'spectrum crisis' is not real.
AT&T Inc. and Deutsche Telekom AG announced Sunday that they have entered into a definitive agreement under which AT&T will acquire T-Mobile USA from Deutsche Telekom in a cash-and-stock transaction currently valued at approximately $39 billion. The agreement has been approved by the Boards of Directors of both companies. AT&T was unavailable for comment.
In follow-up to last week's report that LightSquared (Reston, VA, USA), an upstart 4G wholesaler, may interfere with systems such as Defense Department communications, the company announced it has secured approval from the U.S. Federal Communications Commission to offer dual-mode or terrestrial-only devices.
AT&T (Dallas, TX, USA) and Qualcomm Incorporated (San Diego, CA, USA) announced today that AT&T has agreed to purchase spectrum licenses in the lower 700 MHz frequency band from Qualcomm for $1.925 billion. The bold move will boost AT&T’s anticipated 4G mobile broadband rollout in the U.S. over the coming years.