AT&T will drop bid for T-Mobile

Justice had sued to block merger

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FCC Chairman Julius Genachowski said the commission agreed with AT&T that Congress should authorize an auction for additional spectrum. The FCC has proposed persuading television stations to give up their airwaves in exchange for sharing in auction proceeds.

Besides such an auction, AT&T could also buy spectrum from satellite TV operator Dish Network Corp., which could require an FCC waiver because it is licensed for satellite use.

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