That failed merger's poison pill is the reason T-Mobile is the juggernaut it is today. The cash T-Mobile received allowed them to upgrade their network, and customers could roam free on AT&T's 1700MHz frequency.
AT&T's threat assessment of T-Mobile was correct at the time.
> AT&T's threat assessment of T-Mobile was correct at the time.
I think that assessment was obvious to everyone at the time. The question is whether buying out competitors is good for the public.
Of course, the cash was a penalty for not being able to pull off the merger; if the cash was critical for T-Mobile to become the threat it has been, the outcome is ironic.
I don't know what the breakup cash might have amounted to, but the AT&T roaming agreement was for 7 years, and it's only recently with n41/n71 that T-Mobile has done any better.
The equivalent for this merger would be something like Minecraft and Bethesda games on the A-B launcher for 7 years. Huge giveaway by AT&T I think, as foolish as it might have been for them to think the merger would actually go through; having at-least 4 major carriers was policy at the time and still is (Dish's spectrum hoarding notwithstanding).
AT&T's threat assessment of T-Mobile was correct at the time.