US wireless carrier AT&T is expected to incur $4 billion in costs this quarter if the proposed acquisition of T-Mobile does not happen.
According to Business Week, the company said that the if the acquisition does not happen then it is due to pay T-Mobile parent company Deutsche Telekom $4 billion in break-up fees. The company said that the $4 billion break-up fees includes $3 billion in cash and $1 billion in wireless spectrum book value.
AT&T has planned to purchase T-Mobile for $38 billion, a move that has been opposed from all quarters including rival Sprint, which along with many others, believes that the acquisition will hamper the competition in the wireless market and raise prices for consumers.
Meanwhile, despite the opposition it is facing from the Justice Department, AT&T said that it is continuing to pursue the acquisition deal.
"AT&T Inc. and Deutsche Telekom AG are continuing to pursue the sale of Deutsche Telekom's U.S. wireless assets to AT&T and are taking this step to facilitate the consideration of all options at the FCC and to focus their continuing efforts on obtaining antitrust clearance for the transaction from the Department of Justice," AT&T said.