AT&T officially drops plans to acquire T-Mobile
It wasn't just a mobile payment story, but the purchase of T-Mobile USA by AT&T was certain to have big implications in the growing mobile payment market, most likely impacting the development of the Isis network. But that's not an issue anymore. AT&T officially announced it will not go through with its bid to acquire T-Mobile USA. That means Isis will continue to be a joint venture between three equal partners.
Isis, the mobile payment joint venture between U.S. mobile operators Verizon Wireless, T-Mobile USA and AT&T Mobility, launched last November to build out an NFC mobile payment network. Reports have stated that the partners are looking to split an investment of $100 million to get the network launched. Pilot programs are slated to begin in Salt Lake City and Austin, Texas sometime in the first half of 2012.
AT&T cited actions by the FCC and Department of Justice to block the acquisition as reasons for its decision.
The carrier said the acquisition would have helped issues with the growing spectrum shortage affecting the U.S. and warned that customers will be harmed in the long run by its inability to merge with T-Mobile.
AT&T will recognize a pretax charge of $4 billion to reflect the break-up considerations due Deutsche Telekom, the company said. It also announced it will enter a roaming agreement with Deutsche Telekom, T-Mobile's parent company.
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