On: US Government seeks to block AT&T & T-Mobile's $39 Billion Merger

[thematt]

T-Mobile would clean up on this deal if the US Government succeeds. Look at that breakup fee: $3 billion in cash and another $4 billion in non-monetary benefits.

[randall → thematt]

I think that's why they agreed to it. Would be interesting if this is the one thing that propels T-Mobile out of the back of the pack.

[r00fus → randall]

That, and if they do get the iPhone in Oct as rumored, I will switch from AT&T.

[joelhaus → thematt]

Included in the "non-monetary benefits", T-Mobile would receive access to certain AT&T spectrum (it actually reads as if AT&T would simply have to hand it over)...

This shared spectrum is something that has been sorely lacking in the U.S. and has been terrible for the consumer -- government granted monopolies are auctioned off to single companies and most devices will only work in a single company's spectrum band, however, if the spectrum T-Mobile gets is in the LTE band, this would have a significant positive impact on their service quality.

[iqster → thematt]

I thought it was a sliding scale. It links to the amount of divesture required of AT&T. At some point, the breakup fee goes to naught. (source: I thought I heard this on CNBC this morning ... don't see any articles online that confirm this. Maybe I was dreaming?)