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Mergerís end: Time is money, and AT&T wasted both

  • TC2 Blog
  • 12/21/2011
  • David Rohde

AT&T’s decision on Monday to scuttle its acquisition of T-Mobile USA – for real this time, not just withdrawing its FCC merger application for tactical reasons – has implications beyond AT&T’s failure to merge the two carriers.

The broken deal probably represents more than just a single lost year in AT&T’s wireless network development. National mobile broadband upgrades in the U.S. are a three- to five-year proposition, from planning to completion. Just ask Sprint, whose October 2011 claim that it would get to 120 million LTE POPs by December 2012 from a standing start was laughed out of the room by all of its financial and market analysts.