Washington: As telecom giant AT&T abandoned its USD 39 billion bid to acquire T-Mobile, the Obama Administration termed it as a victory for millions of Americans as this would retain competition in the market.
   
"This result is a victory for the millions of Americans who use mobile wireless telecommunications services," said the Deputy Attorney General James Cole.

"A significant competitor remains in the marketplace and consumers will benefit from a quick resolution of this matter without the unnecessary expense of taxpayer money and government resources," Cole said in a statement.
   
In a statement, AT&T said the actions by the Federal Communications Commission and the Department of Justice to block this transaction do not change the realities of the US wireless industry.
   
It is one of the most fiercely competitive industries in the world, with a mounting need for more spectrum that has not diminished and must be addressed immediately.
   
The AT&T and T-Mobile USA combination would have offered an interim solution to this spectrum shortage. In the absence of such steps, customers will be harmed and needed investment will be stifled, it said.
   
"AT&T will continue to be aggressive in leading the mobile Internet revolution," said Randall Stephenson, AT&T Chairman and CEO.
   
On August 31, the Justice Department filed a lawsuit in US District Court for the District of Columbia, to block the transaction, which would have combined two of the only four wireless carriers with nationwide networks.
   
"Consumers won today," said the Acting Assistant Attorney General Sharis Pozen.
   
"Had AT&T acquired T-Mobile, consumers in the wireless marketplace would have faced higher prices and reduced innovation. We sued to protect consumers who rely on competition in this important industry. With the parties' abandonment, we achieved that result," he said.
   
To reflect the break-up considerations due Deutsche Telekom, AT&T will recognize a pretax accounting charge of USD 4 billion in the fourth quarter of 2011. Additionally, AT&T will enter a mutually beneficial roaming agreement with Deutsche Telekom, said the statement from the telecom giant.

(Agencies)