Friday, December 19, 2014
Search
  
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
T-Mobile to Pay $90 Million To Settle Case With FCC
New Trojan Targetted Banks Wordlwide
FBI Confirms North Korea Was Behind Sony Hack
Apple Responds To BBC's Allegations Over Working Conditions In Chinese Factory
BlackBerry Returns To Cash Flow
Comparison: Quantum Dot Vs. OLED Displays
Toshiba and SK Hynix Reach Settlement in Lawsuit Ahead Of CES
Google Concerned About MPAA's Actions To Revive SOPA
Active Discussions
Digital Audio Extraction and Plextools
Will there be any trade in scheme for the coming PSP Go?
Hello, Glad to be Aboard!!!
Best optical drive for ripping CD's? My LG 4163B is mediocre.
Hi All!
cdrw trouble
CDR for car Sat Nav
DVD/DL for Optiarc 7191S at 8X
 Home > News > Mobiles > Deutsch...
Last 7 Days News : SU MO TU WE TH FR SA All News

Tuesday, July 05, 2005
Deutsche Telekom 'may sell T-Mobile USA'


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.

From The Register



Previous
Next
BTC moves aggressively into VoIP software and hardware        All News        Microsoft Security Advisory
LG to Develop Palm OS Based Phones     Mobiles News      Linux moves into midrange Motorola phones

Source Link Get RSS feed Easy Print E-Mail this Message

Related News
T-Mobile to Pay $90 Million To Settle Case With FCC
T-Mobile Lets You Roll Forward Your Unused Data
T-Mobile To Disclose More Information Related To Consumers Using Mobile Speed Tests
T-Mobile Un-leashes Wi-Fi Worldwide With New Program
Verizon Sprint And T-Mobile Announce new iPhone Plans
French Carrier Iliad To Bid For T-Mobile
FTC Accuses T-Mobile For Bogus Charges
T-Mobile Offers Network Test Drive, Free Music Streaming
Sprint Closer to T-Mobile Acquisition
Sprint Said to Plan T-Mobile Bid
T-Mobile Abolishes Consumer Overages
Blackberry Ends T-Mobile Licensing Agreement

Most Popular News
 
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2014 - All rights reserved -
Privacy policy - Contact Us .