After F.C.C. chariman, Julius Genachowski, earlier this week made the decision that the proposed merger deal between AT&T and T-Mobile did not meet the commission's standard for approval, The New York Times is reporting that the two companies have decided to withdraw their application. 

The deal, however, is not dead. In a joint statement, T-Mobile's parent company, Deutsche Telekom, and AT&T said they intend to "continue to pursue the sale" of T-Mobile. In a solo statement, AT&T said it is taking this time to better "facilitate the consideration of all options at the F.C.C." The companies made it known that if the $39 billion deal does not go through, AT&T is prepared pay the $4 billion breakup fee to Deutsche Telekom. 

[via NY Times