AT&T TO PAY T-MOBILE $6 BILLION IF MERGER FALLS THROUGH

AT&T will pay T-Mobile $3 billion in cash, a $1 billion roaming agreement, and $2 billion in spectrum if the Federal Communications Commission and the Department of Justice reject AT&T’s proposed $39 billion acquisition of T-Mobile. The agreement’s 15% breakup fee would shatter global records, Reuters said, noting that the 7.7% breakup cash agreement is already high.

On Wednesday, AT&T’s CEO Randall Stephenson met with the Senate Judiciary Committee to discuss the acquisition. AT&T’s CEO Randall Stephenson has argued that there’s already plenty of competition in the U.S. wireless market and that the deal will actually create jobs. Similarly, the Communications Workers of America backs the deal and believes it will be a “victory for broadband proponents. AT&T’s competition isn’t so sure.

Sprint’s CEO, Dan Hesse said the deal would “stifle innovation” and the carrier believes it would create a “vertically integrated duopoly.” Verizon has kept to itself, but did note that, if confirmed, the deal could be “an excuse for the government to insert itself into the marketplace.”