AT&T, Verizon slip as Sprint ends T-Mobile bid

|About: AT&T Inc. (T)|By:, SA News Editor

AT&T (T -1.5%) and Verizon (VZ -1%) are lower following news Sprint is abandoning its attempt to acquire T-Mobile (at least for now) due to regulatory opposition, and has sacked CEO Dan Hesse.

"Four national wireless providers is good for American consumers," FCC chairman Tom Wheeler declared in a statement today. "Sprint now has an opportunity to focus their efforts on robust competition."

As a standalone entity, T-Mobile has become a thorn in Verizon and (especially) AT&T's side, grabbing both postpaid and prepaid share thanks to aggressive pricing and a slew of promotions. The "Un-carrier" posted 1.5M net subscriber adds in Q2, including 908K branded postpaid net adds.

T-Mobile's price pressure is unlikely to abate if Iliad succeeds in its bid to buy the company, given Iliad's track record in France. Sprint, meanwhile, may get more aggressive under new CEO Marcelo Claure (the founder of mobile distributor Brightstar), as it tries to reverse many quarters of share losses.