AT&T and T-Mobile Mull Over Joint Venture if Acquisition Plan Fails

December 1, 2011, By Sanjeev Ramachandran

What could be the next possible solution to a failed business acquisition?

The immediate possibility, with out any doubt, is a joint venture or a partnership, right. Seems this is what AT&T and T-Mobile USA are planning to do.

Under the circumstances where FCC is opposing AT&T’s planned $39 billion acquisition of T-Mobile, the deal is most unlikely to happen. FCC has claimed that the merger deal would eventually lead to significant job losses and negligible cost savings being passed on to consumers.

They have also pointed out that it would affect the competition in telecom industry and would ultimately result in service providers charging high prices, for services, from customers.

AT&T and Deutsche Telekom (the T-Mobile parent) should now be weighing options for a joint venture. One advantage is that such a partnership would help the two telecom tycoons to pool their infrastructure together.

Besides, these two companies could jointly use the T-Mobile spectrum. In this way, this partnership could solve some of the wireless capacity constrains and also avoid the concerns raised by FCC.

We guess we will have to wait and watch how events shape up on that terrain. Though not much information has been made available on such a possibility, we would serve it hot on your table as and when we come to know of something.

In the meantime, do not hesitate to scribble in your thoughts on this topic in the comments space below.

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