That's it, folks. It's done. Kaput. Finished. First reported by The Wall Street Journal and The Associated Press, AT&T has released a statement saying the deal is over.

“The actions by the Federal Communications Commission and the Department of Justice to block this transaction do not change the realities of the U.S. wireless industry. It is one of the most fiercely competitive industries in the world, with a mounting need for more spectrum that has not diminished and must be addressed immediately. The AT&T and T-Mobile USA combination would have offered an interim solution to this spectrum shortage. In the absence of such steps, customers will be harmed and needed investment will be stifled.”

AT&T has already set aside $4 billion (with a "b") in break-up fees, which they'll be paying to someone now.  Big business is an expensive playground to play in.

Long live the Big 4.

Source: AT&T