Deutsche Telekom CEO wants T-Mobile to merge with Sprint, not Dish

Deutsche Telekom CEO wants T-Mobile to merge with Sprint, not Dish
Even though Deutsche Telekom owns 66% of T-Mobile's shares, the carrier does not have control of the latter's Board. But that hasn't prevented Deutsche Telekom CEO Timotheus Höttges from discussing his plans for the fourth largest carrier in the U.S. The executive allegedly opened up to investors at an RBC Capital road show in Toronto last week. At the event, Höttges said that more value would be created by a T-Mobile-Sprint combination than by the merger of T-Mobile with Dish Network. Last week, word leaked out that Dish and T-Mobile are negotiating a merger of the two companies.

According to a source who spoke with the New York Post, Höttges has an end game in mind for T-Mobile and that calls for the carrier to be sold to cable giant Comcast. The Deutsche Telekom chief is concerned that a deal with satellite content provider Dish would end up precluding T-Mobile from being bought by Comcast. Certainly the regulatory issues involved in a merger between a large satellite provider and a giant cable company would be immense, and there would be plenty of reasons for the FCC and DOJ to block such a deal.

According to the unnamed source, Höttges feels that a deal with Sprint could pump up T-Mobile's size, especially after the FCC auctions off valuable low-frequency spectrum in 2016. The Deutsche Telekom executive is said to believe that increasing the size of T-Mobile would make it a more attractive merger candidate for Comcast.

The problem there, is that Sprint and T-Mobile spent months discussing and strategizing a merger last year that was blocked by U.S. regulatory agencies before it was ever agreed to. The FCC and the FTC both said that a merger between the third and fourth largest U.S. mobile carriers would not pass the smell test as far as they were concerned. With the lack of regulatory support, Sprint backed off. That led to an eventually abandoned takeover bid from French carrier Iliad, which was trying to buy T-Mobile with a low-bid. Deutsche Telekom's Höttges said that with T-Mobile producing $1 billion in EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) annually, the company should receive a premium price in any sale.

source: NewYorkPost via FierceWireless

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22 Comments

1. theguy2345

Posts: 1216; Member since: Jun 24, 2014

As long as they keep using GSM, keep my rate, and keep offering the unlimited plan, it doesn't matter to me.

11. waddup121 unregistered

yaaay

12. johnbftl

Posts: 283; Member since: Jun 09, 2012

No one is going be using GSM within a few years. LTE has taken over.

16. o0Exia0o

Posts: 903; Member since: Feb 01, 2013

LTE IS NEXT GEN GSM. HENCE THE REASON THAT LTE CAN FALL BACK ON A GSM NETWORK BUT NOT ON A CDMA NETWORK....

18. TheRequiem

Posts: 245; Member since: Mar 23, 2012

All chipsets support fall-back to CDMA from LTE, this is incorrect information.

22. o0Exia0o

Posts: 903; Member since: Feb 01, 2013

CDMA and LTE are 2 different INCOMPATABLE systems...LTE CANNOT fall back on CDMA! It can fall back on GSM because LTE is a next gen GSM network. Why do you think that a carriers like AT&T or T-Mobile, when you are using a device on their network when you loose LTE signal when using VoLTE you do not loose the call, but when using Advanced calling 1.0 (VZW's VoLTE) when you loose the LTE signal you loose the call. Verizon is not dropping calls because they want you to think their network is crap, the call gets dropped because there is no way for them to produce a proper handshake from VoLTE to CDMA... 2 INCOMPATABLE SYSTEMS....

2. JesseJames

Posts: 226; Member since: Feb 22, 2015

SMH, here we go again.

3. Tazer2365

Posts: 52; Member since: Jul 28, 2012

Fourth largest carrier? I believe T-Mobile is the third largest carrier here in the United States.

19. TheRequiem

Posts: 245; Member since: Mar 23, 2012

Both carrier just announced their 1st quarter earnings and Sprint Is still the third largest carrier because they also added over a million customers.

4. realhumanbeing

Posts: 53; Member since: Oct 18, 2014

Watch this be the death of T-Mobile, Sprint is cancer, lol.

20. TheRequiem

Posts: 245; Member since: Mar 23, 2012

Your completely out of the loop, T-Mobile/ Sprint would have the largest spectrum portfolio in the country and likely, the fastest network for years to come.

5. toyboyz

Posts: 233; Member since: Jan 22, 2010

This crap again!

6. downphoenix

Posts: 3165; Member since: Jun 19, 2010

This just in, DT CEO diagnosed with memory loss.

7. B-power

Posts: 258; Member since: Feb 22, 2014

Over here in The Netherlands T mobile is very overpriced.

9. Augustine

Posts: 1043; Member since: Sep 28, 2013

That's because mobile plans are overpriced in the US. While a plan with unlimited minutes and 3GB cost €25 (or $28) in the Netherlands, it runs for $60 in the US. That's less than half the price stateside. A similar plan at AT&T would deprive its customers of $80. (v. bit{dot}ly/1e1cPG2)

8. darkvadervip

Posts: 366; Member since: Dec 08, 2010

So it's not cool to merge them with AT&T but they want to merge with other companies and sprint.

10. NateAdam8

Posts: 436; Member since: Feb 17, 2012

Keep it GSM cause I like switching between my two smartphones and I like the price I'm paying for my s**tty T-Mobile.

13. bugsbunny00

Posts: 2262; Member since: Jun 07, 2013

tmobile is better off on its own,sprint will drag the third largest carrier(t mobile) back on 4th.

14. My1cent

Posts: 370; Member since: Jan 30, 2014

Tsprint

15. Eclectech

Posts: 346; Member since: May 01, 2013

If T-Mobile merged with Comcast, that would be awful. Comcast has proven over and over again how evil they can be and the customer experience at XFinity-Mobile would be ruined. I don't think a T-Mobile/Sprint merger would be a good fit. Competing technologies, culture conflicts and major layoffs come to mind. I think T-Mobile should proceed with a merger with Dish. ...for the record, I'm a Sprint customer.

21. Jammer

Posts: 1; Member since: Jun 10, 2015

Left out from the NY Post story. "A Deutsche Telekom spokesman said the quotes and paraphrases in this story are false. He declined to say how they were false."

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