Dec 20th, 2011

AT&T and T-Mobile have called off talks of a merger after some serious federal opposition, but there is still some unfinished business left to attend to. As repayment for the failure to close on a deal, AT&T owes a sum of $3 billion to T-Mobile’s parent company, Deutsche Telekom. TMo will see none of that cash. Their reparation comes in the form of an expanded network via new AWS spectrum in 128 markets and a UMTS roaming deal that will increase customer reach from the current 230 million to a projected 280 million. Of the markets covered in the newly awarded radio space, 12 are ranked in the top 20.

While AT&T was unable to acquire T-Mobile, the network expansions it will provide will in its own way meet the original deal’s intention to provide greater mobile access for more Americans. The end result sounds like a win for both T-Mobile and wireless consumers, though its effect on AT&T’s future plans is unclear at this time.

[Duetsche Telekom via Engadget]

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