AT&T Break-up Fee is $6 Billion

AT&T will have to pay Deutsche Telekom $6 billion as a break-up fee in case the Department of Justice lawsuit opposing the purchase of T-Mobile USA fails to gain regulatory approval, as it now has.

The $6 billion break-up fee would include $3 billion of cash and about $2 billion worth of spectrum, plus a roaming agreement valued at $1 billion.

T-Mobile USA appears to have been doing little over the past several months other than preparing to be acquired, losing customers and marketing focus. If the deal falls through, as now seems likely, it will gain spectrum it needs for 4G services, plus cash and roaming rights, but still will be a lagging number-four player in the U.S. market.

AT&T break-up fee is $6 billion