AT&T and T-Mobile have withdrawn their merger application with the FCC, according to a joint release made by the companies. AT&T also said it will take a $4 billion charge against earnings to account for the breakup fee in the agreement, of which $3 billion is in cash and $1 billion is in spectrum. The announcement makes the deal considerably less likely to close, to the relief of many consumer advocates. The complete story can be read at the New York Times. It is unclear what the withdrawal of the merger application means for T-Mobile's access to selling the iPhone. On the one hand, with Sprint now having the iPhone, Apple appears to want to get the iPhone in the hands of as many customers as possible, which could make it more likely that T-Mobile will get access to the iPhone. On the other, Apple could well decide that T-Mobile is unlikely to survive and not want to dilute the iPhone and Apple brand, and not allow T-Mobile to sell it. From a larger perspective, the withdrawal of the merger application seems to signal that the companies recognize there is too much opposition to the merger for it to close. The FCC and Department of Justice have stated their opposition to the merger, and the DoJ has filed an anti-trust lawsuit to stop the merger. Similarly, the FCC stated that the merger does not meet the requirements for approval.