Breaking News

G.SKILL Announces T5 Neo Series DDR5-6400 CL38 512GB (64GBx8) Overclocked R-DIMM Memory Kit with AMD EXPO Support for AMD Ryzen Threadripper PRO Workstations ZOTAC to Launch GeForce RTX 5090 ARCTICSTORM AIO & GeForce RTX 5060 Low Profile KIOXIA Commences Sample Shipments of 9th Generation BiCS FLASH 512Gb TLC Devices Synology Unveils DiskStation DS225 Plus New PS5 system update beta previews DualSense wireless controller pairing across multiple devices

logo

  • Share Us
    • Facebook
    • Twitter
  • Home
  • Home
  • News
  • Reviews
  • Essays
  • Forum
  • Legacy
  • About
    • Submit News

    • Contact Us
    • Privacy

    • Promotion
    • Advertise

    • RSS Feed
    • Site Map

Search form

Deutsche Telekom 'may sell T-Mobile USA'

Deutsche Telekom 'may sell T-Mobile USA'

Smartphones Jul 5,2005 0

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

Tags: mobilesT-Mobile
Previous Post
BTC moves aggressively into VoIP software and hardware
Next Post
Microsoft Security Advisory

Related Posts

  • Wireless Companies Extend Concessions for Coronavirus-hit Until June 30

  • Some T-Mobile Customers Get Quibi For Free

  • T-Mobile Completes Merger with Sprint

  • T-Mobile's $ 15 Connect 5G Plan Launches Ahead of Schedule

  • T-Mobile Says it is Financially Prepared to Close the Sprint Merger

  • T-Mobile to Temporarily Close Indoor Mall Stores From Monday

  • FCC Proposes Over $200 Million fines Against Wireless Carriers For Failing to Protect Consumer Location Data

  • T-Mobile and Sprint Announce Amend Their Business Combination Agreement

Latest News

G.SKILL Announces T5 Neo Series DDR5-6400 CL38 512GB (64GBx8) Overclocked R-DIMM Memory Kit with AMD EXPO Support for AMD Ryzen Threadripper PRO Workstations
PC components

G.SKILL Announces T5 Neo Series DDR5-6400 CL38 512GB (64GBx8) Overclocked R-DIMM Memory Kit with AMD EXPO Support for AMD Ryzen Threadripper PRO Workstations

ZOTAC to Launch GeForce RTX 5090 ARCTICSTORM AIO & GeForce RTX 5060 Low Profile
GPUs

ZOTAC to Launch GeForce RTX 5090 ARCTICSTORM AIO & GeForce RTX 5060 Low Profile

KIOXIA Commences Sample Shipments of 9th Generation BiCS FLASH 512Gb TLC Devices
Enterprise & IT

KIOXIA Commences Sample Shipments of 9th Generation BiCS FLASH 512Gb TLC Devices

Synology Unveils DiskStation DS225 Plus
Enterprise & IT

Synology Unveils DiskStation DS225 Plus

New PS5 system update beta previews DualSense wireless controller pairing across multiple devices
Gaming

New PS5 system update beta previews DualSense wireless controller pairing across multiple devices

Popular Reviews

be quiet! Light Loop 360mm

be quiet! Light Loop 360mm

be quiet! Dark Mount Keyboard

be quiet! Dark Mount Keyboard

be quiet! Light Mount Keyboard

be quiet! Light Mount Keyboard

Noctua NH-D15 G2

Noctua NH-D15 G2

Soundpeats Pop Clip

Soundpeats Pop Clip

be quiet! Light Base 600 LX

be quiet! Light Base 600 LX

be quiet! Pure Base 501

be quiet! Pure Base 501

Terramaster F8-SSD

Terramaster F8-SSD

Main menu

  • Home
  • News
  • Reviews
  • Essays
  • Forum
  • Legacy
  • About
    • Submit News

    • Contact Us
    • Privacy

    • Promotion
    • Advertise

    • RSS Feed
    • Site Map
  • About
  • Privacy
  • Contact Us
  • Promotional Opportunities @ CdrInfo.com
  • Advertise on out site
  • Submit your News to our site
  • RSS Feed