Deutsche Telekom 'may sell T-Mobile USA'

[SeaFox]

Yeah, this is from the Register. But it's not one of their commentary articles.

Deutsche Telekom 'may sell T-Mobile USA' (http://www.theregister.co.uk/2005/07/04/deutsche_telecom_mulls_tmobile_usa_sale/)

By ElectricNews.Net (http://forms.theregister.co.uk/mail_author/?story_url=/2005/07/04/deutsche_telecom_mulls_tmobile_usa_sale/)
Published Monday 4th July 2005 13:43 GMT

Deutsche Telekom is reportedly toying with the idea of either selling its US mobile arm T-Mobile or upgrading the operator's network to be more competitive.

Reports suggest that selling T-Mobile USA could potentially net the German telecommunications firm up to $30bn. However, if Deutsche Telekom holds on to the US mobile subsidiary it will need to re-vamp its network at a cost estimated at around $10bn.

Officials at Deutsche Telekom and T-Mobile USA have not commented on these latest reports, but chief financial officer Karl-Gerhard Eick and other executives at Deutsche Telekom have reportedly told fund managers that a decision would be made either way by the end of the year.

The US mobile market has become increasingly competitive in recent months with players in the market offering low-cost calls and high-speed internet access services. In addition, the market is becoming more and more consolidated with the number of national mobile operators widely expected to fall to four by the end of the year. To compete effectively in this market investors believe Deutsche Telekom would need to invest significantly in its network including buying 3G licenses in the US when they are auctioned in 2006.

While the idea of selling off the US mobile operator sounds the more appealing option, analysts warn this may not be easy. Reports name Vodafone as a possible buyer for T-Mobile USA but the UK-based mobile group have repeatedly refuted the idea. Apart from Vodafone, analysts suggest some cable companies aiming to enter the mobile market could show interest.

Investors worry though that if Deutsche Telekom sells off T-Mobile USA it will be effectively selling its fastest growing business. The firm has emerged as one of the fastest-growing US providers in the past few years; in 2004 it reported a 30 percent increase in customers and revenue growth of almost 50 per cent. In the first quarter of 2005 T-Mobile USA had revenue of $2.85 billion and more than 18 million customers.

But the firm is still the smallest national player in the US mobile market, controlling just 10 per cent of customers competing with heavy-hitters such as Verizon Wireless and Cingular Wireless. Bearing this in mind, analysts generally believe a sale could well be the best option for Deutsche Telekom going forward.

© ElectricNews.Net

[SeaFox]

All I have to say to this is "I hope not!" If T-Mobile USA is sold to a cable company I am definitely switching to a different provider. If Cingular buys them, I'll be happy because we'll get a better selection of phones, but disappointed because it will be another piece of Cingular becoming a bigger company, which only causes service quality to go down as telephone and cable companies have shown us.

[Box215]

Cingular would never be approved by the FCC to buy T-Mobile. Nor would they want to. Im only open to Vodafone buying T-Mobile USA, and no one else. Voda have said they arent interested though. I actually really wish Vodafone had succeeded with buying ATTW, damn Cingular.

[TheZodiac]

I wouldnt be suprised if a cable comany DID buy them Considering Tmobile has one (if not THE) biggest WiFi hotspot networks in all of the USA (and partnered with other countries) to make them more desireable in that areana - Who knows.. perhaps Comcast or Cox will buy them :-P

Wouldnt it be funny though - Later this year, when AT&T is able to use their "wireless" brand again, they are supposed to lease off the back of Sprints technology to become a VCP (vitrual cellular provider, or some acronym like that) Wouldnt it be interesting if THEIR mother company bought t-mobile ;-)

Now, that would be funny.





(you heard it here first, folks)

[carcomptoy]

What do you mean if they're able to use their "wireless" brand again...you mean they're gonna become an MVNO off of Sprint? Aren't there ENOUGH? OMG I hope DT doesn't sell off T-Mobile USA, but if they do, I can only hope that perhaps Vodafone will buy it. Not that I want some big huge monster company to come into the US (whatever anyone says, no one can tell they own 45% of Verizon), just that I like having a carrier with ties to the rest of the world. Also, I don't want to be a part of Cingular...bad customer service and I hate the orange theme:p DT should invest the 10Bil and let T-Mobile USA grow even more...I'll miss Catherine Zeta-Jones!!!:D

[SeaFox]

DT should invest the 10Bil and let T-Mobile USA grow even more.

I agree. T-Mobile has been gaining a lot of subscribers annoyed at their current company since number portability took effect. If they really are growing so fast they wont be 10% market share forever. An infusion of infastructure investment and carrying a more diverse selection of phones (quit with the damn Sidekicks!) will attract even more people to T-Mobile rather than the usual standbys of Cingular/Sprint.

[carcomptoy]

HAHA I'm not bothered at all by the Sidekicks...it's neat to have a T-Mobile exclusive phone (not counting regional carriers here). But I do think they should have a better selection of phone, mainly S60 phones as I am biased towards them:) I mean, look at Cingular's selection...they have a wider, more varied selection of phones!

In any case, DT isn't gonna sell T-Mobile USA, as evidenced by phonearena.com
http://www.phonearena.com/htmls/Deutsche-Telekom-does-not-intend-to-sell-T-Mobile-USA-article-a_626.html

However, phonescoop.com does point out that "Duetsche Telekom is denying the rumors are true. However it is standard practice for companies to deny rumors of a sale until the decision is public."

[SeaFox]

HAHA I'm not bothered at all by the Sidekicks...it's neat to have a T-Mobile exclusive phone (not counting regional carriers here). But I do think they should have a better selection of phone, mainly S60 phones as I am biased towards them:) I mean, look at Cingular's selection...they have a wider, more varied selection of phones!

I wouldn't be bothered by it except they market them a lot for the fact they are really a nitche product. Ask a T-Mo sales rep in the store about high end phones, and they point to the Sidekicks like they're the same thing. :rolleyes:

In any case, DT isn't gonna sell T-Mobile USA, as evidenced by phonearena.com
http://www.phonearena.com/htmls/Deutsche-Telekom-does-not-intend-to-sell-T-Mobile-USA-article-a_626.html

That's cool to hear. But like you point out, might just be trying to delay the flood of people who might call them about the sale until after it's finalized.

[carcomptoy]

OMG the Sidekick is NOT high-end...well maybe it is but it is definitely a niche product:rolleyes: