AT&T and Deutsche Telekom mulling joint venture if proposed acquisition fails

While details are pretty slim, the supposed back-up plan both companies are reportedly discussing involves forming a joint network that would pool wireless assets and share spectrum. The venture would be very similar to what T-Mobile and Orange have done in the UK with Everything Everywhere.

As a brief refresher, AT&T announced back in March that it agreed to acquire T-Mobile USA for $39 billion in cash. If approved, the acquisition would be the biggest in the history of the wireless industry. It also would make AT&T even bigger than Verizon.

Over the past few months AT&T has tried to present the merger as a victory for consumers, AT&T, and T-Mobile. The company stated multiple times it needs to buy T-Mobile so that it can use T-Mobile's wireless spectrum to provide more wireless capacity and accelerate its 4G LTE roll-out. Deutsche Telekom, on the other hand, has made it clear that it wants to exit the U.S. wireless market.

News of the plan is just the latest sign that the merger just isn't going to happen. Both company's already withdrew their application from the FCC and AT&T reported last week that it intends to pay $4 billion in Q4 2011 to Deutsche Telekom as a break-up fee.