toggle

AAPL Stock: 115.55 ( -2.89 )

Printed from http://www.macnn.com

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

POST TOOLS:

TAGS :

toggle

Comments

Login Here

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

toggle

Network Headlines

Follow us on Facebook

toggle

Most Popular

Advertisement

Recent Reviews

HP 14-x030nr 14-inch Chromebook

If you're like us, chances are you've come to realize that you need the ability to access the Internet on the go. Also, you've prob ...

15-inch MacBook Pro with Force Touch

Apple's 15-inch Retina MacBook Pro continues to be a popular notebook with professional users and prosumers looking for the ultimate ...

Typo keyboard for iPad

Following numerous legal shenanigans between Typo -- a company founded in part by Ryan Seacrest -- and the clear object of his physica ...

toggle

Most Commented