Back in March, AT&T announced that they were going to acquire T-Mobile USA, so they can expand their spectrum and enhance their network. While this sounded like a good idea, it would ultimately lower competition in the US mobile market and this didn’t cut it for many people, especially the FCC. The FCC has declined the merger, making AT&T to pull the application from the FCC and scrap the deal.

Today, AT&T has publicly made an announcement that they’ve scrapped the T-Mobile deal and will now cough up $4 billion to Deutsche Telekom as a breakup fee and an additional $3 billion. Interestingly, AT&T and T-Mobile agreed a roaming deal which will allow phones to work on both of their networks.

Here’s AT&T’s comment about today’s announcement:

The actions by the Federal Communications Commission and the Department of Justice to block this transaction do not change the realities of the U.S. wireless industry. It is one of the most fiercely competitive industries in the world, with a mounting need for more spectrum that has not diminished and must be addressed immediately. The AT&T and T-Mobile USA combination would have offered an interim solution to this spectrum shortage. In the absence of such steps, customers will be harmed and needed investment will be stifled.