Telecom giants AT&T and T-Mobile USA have teamed up to file a request with the US FCC (Federal Communication Commission), asking for its approval for the proposed $1 billion worth of transfer in wireless airwaves.
Last year, AT&T announced that it was planning to acquire T-Mobile for $39 billion, however, the proposed acquisition failed to get the approval of the FCC. It was not just the FCC, but the Justice Department and state attorneys didn't give their consent either, for allowing AT&T to move ahead with the takeover.
The stiff opposition came from all concerned corners and eventually pushed AT&T to drop its takeover plans of T-Mobile on Dec 19 2011. Subsequently, the company announced that it would be turning over the spectrum, alongside $3 billion in cash to Deutsche Telekom AG, the parent company of T-Mobile.
"This additional spectrum will help meet the growing demand for wireless broadband services. We hope the FCC will move swiftly to approve the license assignments," Tom Sugrue, T-Mobile's senior vice president for government affairs, said in an emailed statement, Wall Street Journal reports.
Both the companies urged in their filing that: "Consumers have a growing appetite for streaming video and social networking sites. Carriers face the challenge of ensuring they have sufficient spectrum to meet the rapidly expanding needs of consumers".