AT&T, T-Mobile To Transfer $1 Billion Worth Of Wireless Airwaves

Telecom giant AT&T is asking for approval from the Federal Communications Commission (FCC) to transfer $1 billion worth of wireless spectrum to cell carrier T-Mobile resulting from the failure of AT&T’s failed bid to purchase T-Mobile last year for $39 billion, reports Rue Liu for SlashGear. AT&T gave up on its plans to merge with T-Mobile in December after repeated scrutiny by the US Department of Justice (DOJ) along with lawsuits brought on by state attorneys general and rival carriers. After the FCC threatened to request an administrative hearing, AT&T decided the efforts were not leaning favorably in its direction and walked away from the plans. As part of its pre-negotiated terms for backing out of the acquisition, AT&T will give T-Mobile’s German owner Deutsche Telekom $3 billion in cash along with the $1 billion in spectrum allocation. Tom Sugrue, T-Mobile’s senior vice president for government affairs, speaking in the Wall Street Journal said, “this additional spectrum will help meet the growing demand for wireless broadband services.” T-Mobile, the fourth largest carrier in the US can certainly utilize this spectrum. They have not announced any plans for rolling out LTE 4G service and is currently hampered by its use of non-standard UMTS 3G service, writes Daniel Eran Dilger for Apple Insider. This prevents the carrier from selling Apple’s existing iPhone, which it has cited as a key reason for the company’s poor sales performance.