AAPL Stock: 118.3 ( + 0.49 )

Printed from

T-Mobile parent confirms $6b AT&T breakup fee

updated 04:55 pm EDT, Fri May 13, 2011

AT&T to give Deutsche Telekom $6b if deal fails

Deutsche Telekom, the parent company of T-Mobile USA, has confirmed that if the $39 billion deal with AT&T isn't approved by regulators, AT&T will give the German provider $6 billion in cash and benefits, it was reported on Friday. Back in March, this breakup fee was a smaller $3 billion in cash. The remaining $3 billion is from an estimated value of spectrum and a national roaming agreement, said a Deutsche Telekom spokesperson.

Those close to the matter said the spectrum accounts for $2 billion while the roaming agreement makes up the remaining $1 billion. The German provider's CEO, Rene Obermann, said on Thursday he believed the transaction will be finalized in the first half of 2012.

Before it goes through, however, the deal needs approval in the US from the FCC and the Department of Justice.

The $6 billion ensures T-Mobile could start an LTE network on its own. The carrier said it couldn't implement LTE-based 4G because it didn't have the frequency needed for the performance it wanted.

by MacNN Staff



Login Here

Not a member of the MacNN forums? Register now for free.


Network Headlines

Follow us on Facebook


Most Popular


Recent Reviews

Ultimate Ears Megaboom Bluetooth Speaker

Ultimate Ears (now owned by Logitech) has found great success in the marketplace with its "Boom" series of Bluetooth speakers, a mod ...

Kinivo URBN Premium Bluetooth Headphones

We love music, and we're willing to bet that you do, too. If you're like us, you probably spend a good portion of your time wearing ...

Jamstik+ MIDI Controller

For a long time the MIDI world has been dominated by keyboard-inspired controllers. Times are changing however, and we are slowly star ...


Most Commented