Deutsche Telekom is still going to support T-Mobile USA

Deutsche Telekom is still going to support T-Mobile USA
With no major placement shifts among the four major domestic wireless players, T-Mobile's stance of being fourth place made Deutsche Telekom consider at one point ditching their losses with T-Mobile USA. We've heard many things potentially going down over the course of the last year – such as the possibility of Sprint being bought up by Deutsche Telekom to strengthen its presence in the US market. There were slight echoes a couple months ago that hinted to some disappointment seen with T-Mobile USA with the possibility of Deutsche Telekom selling them off. Thankfully things have cooled down a bit after Deutsche Telekom CEO Rene Obermann reiterated to investors that the company is still committed in supporting T-Mobile USA. In fact this isn't the first time we're reported something like this, but back in 2005, we saw how Deutsche Telekom also remained committed in supporting T-Mobile USA. Obermann said, “After all, it is making us a great deal of money.” Even though they still lag behind Sprint in terms of customers, we've seen a huge resurgence in the company as a plethora of devices that have landed and are proving to be gold for the company. If T-Mobile can follow up the HTC HD2's stellar performance, they could eventually see themselves move out from their current position and into third place.

source: The Wall Street Journal via Phonescoop



1. networkdood

Posts: 6330; Member since: Mar 31, 2010

EVO 4G may keep TMOBILE in 4th....stay tuned.

2. jrcrow79

Posts: 477; Member since: May 02, 2008

yes 3rd place..ONLY if sprint gets bought one way or another or does ch.11..after all tmobile ISNT a REAL cell network..they r based in Germany and from there..they rent out cell site towers..thats it..and thats why they will always be the smallest

3. pingpong

Posts: 145; Member since: Mar 28, 2010

@jrcrow79 - Ummm I think you are mistaken T-Mobile for MetroPCS. Tmo has all their own towers, why else would they have their own 3G frequency that nobody else in the US uses?

4. Gawain

Posts: 436; Member since: Apr 15, 2010

@jrcrow79 - You're 100% incorrect about T-Mobile. They are an honest to goodness infrastructure owning network. It originates from four of the original PCS carriers: VoiceStream Wireless, Ariel, Omni Point and Powertel primarily. There's also about a dozen other former companies that are now "T-Mobile USA" owned by Deutsche Telekom.

5. remixfa

Posts: 14605; Member since: Dec 19, 2008

lol, jcrow, your confusing Tmobile with Sprint. Sprint sold all their towers to some company and is renting them back to save money on repairs. Tmobile has their own towers and has a 3g footprint on par with ATT and faster than ALL the other networks in areas, including WimaXX, with its new 3g+ 21/mbs speeds.

8. Gawain

Posts: 436; Member since: Apr 15, 2010

@remixfa - technically not correct either. Sprint signed a $5B deal with Ericsson to outsource the management of their network. Sprint still owns the infrastructure, but Ericsson took on the day-to-day operations (including transferring a bunch of Sprint employees to Ericsson payroll).

6. BeInspired

Posts: 45; Member since: Apr 21, 2009

Looking forward to have T-mobile's video call function rolls out. That would be more fun to have 3G services. T-mobile, i have lots of expections on you, so please!

7. CRICKETownz

Posts: 980; Member since: Oct 24, 2009

@jrcrow79 LOL..."after all tmobile ISNT a REAL cell network". That's the funniest line I've heard on PA to date. If I worked for T-Mobile or even used T-Mobile as a service provider that line right there would be enough to hurt/make me angry. The worst thing is that the statement is probably 65% true. Damn T-Mo gonna take that? The people have spoken...

9. Homotechual

Posts: 65; Member since: Oct 27, 2009

As a employee JRCROW has made this comment before on previous posts about T-Mobile. I'v read that comment before and have replied to it before. T-Mobile is a great alternative to the other carriers, and one of the best carriers for families. When I worked at Verizon most my clients were professionals who traveled a lot. T-Mobile most my customers are families and your average consumer. The problem with T-Mobile is they have yet to merge with a huge telecom provider. The big 3 all merged Sprint/Nextel, Verizon/Alltel, Cingular/AT&T. I only wonder where they would have been if neither of those mergers happened. It also doesn't help that CDMA is more dominant in the U.S then GSM.

10. Gawain

Posts: 436; Member since: Apr 15, 2010

Therein lies the rub. The regulators allowed the Deutsche Telekom takeover for "T-Mobile USA" because there wasn't a telco behind it. The regulators won't allow foreign ownership of that kind of telecom infrastructure, especially while Deutsche Telekom is itself a major telco. Sprint/Nextel is no longer aligned with a telco either. Embarq was divested and is now owned by Centennial. However, Sprint does still have its internet backbone, which is a lone stabilizing revenue factor for Sprint (though that kind of traffic is a cheap commodity now). I would argue also that GSM versus CDMA is not the defining factor but A-Side/B-Side vs. PCS (1900MHz - vis-a-vis AT&T/VZW vs. Sprint/TMo). While there is some overlap between all four in terms of spectrum, there's no arguing that the incumbents have an inherent advantage with regards to coverage, since they've had infrastructure in place since the late 19070s.

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