The US Federal Communications Commission has said that it has accepted the withdrawal of bid by AT&T to acquire T-Mobile USA in a deal worth about $39 billion.

They said that the withdrawal is a tactical move after the commission chairman said that he would move to oppose the deal. The Justice Department had already filed an antitrust suit to oppose the merger. The two companies have affirmed that they are not walking away from the deal and will continue to fight for the takeover. They said that will fight the legal battle against the Department of Justice in the United States District Court for the District of Columbia for the deal or through "alternate means".

Meanwhile Commission has released its staff report on the proposed merger. The repord read, "By combining these two nationwide providers, the proposed transaction would result in an increase in both subscriber and spectrum concentration that is unprecedented in scale." It also warned that the merger would result in declining competition and net loss of jobs in the US market.

AT&T also announced that it will take a $4 billion charge against earnings, which is a breakup fees that is owned to the Deutsche Telekom. The two companies said that the planned $39 billion purchase of T-Mobile USA looks highly doubtful due to several challenges.

They said that the withdrawal is a tactical move after the commission chairman said that he would move to oppose the deal. The two firms said that they will now focus on the antitrust trial and expressed their commitment to continue to work on the proposed merger. Analysts say that AT&T might also decide to sell more than 40 per cent of T-Mobile's assets to rival firms in order to address the concerns of the Justice Department and F. C. C.