T-Mobile U.S.A. to get spun off by Deutsche Telekom?

This article contains unofficial information.
T-Mobile U.S.A. to get spun off by Deutsche Telekom?
2010 is expected to be a great year for T-Mobile and its customers. A number of a high profile smartphones-like the HTC HD2 and the Nexus One are now or soon will be wearing the T-Mobile brand. The fourth largest carrier in the country appears poised to make a move on the operator directly above it, Sprint. Despite all of these positive looking items, T-Mobile U.S.A. is a unit of Germany's Deutsche Telecom and the latter has been advised by several Investment Banks to rid itself of units that are dragging it down, such as T-Mobile. Some of the possibilities include an IPO of the unit, merging T-Mobile U.S.A. with another U.S. cellular operator, or spinning off a percentage of the company while keeping the majority. The goal of all of these options is to remove T-Mobile's underperforming financials from Deutsche Telekom's books thus hoping that the company would get a better reception from the investors on Germany's Bourse. According to the WSJ, DT is currently meeting with Investment Banking firms, going over its options. With differences in the technology they each use, the often whispered rumor of a deal between Sprint (CDMA) and T-Mobile (GSM) would seem to be impossible to pull off. No matter what happens to the carrier this year, at least its customers or reps can point with pride to handsets like the Nexus One and the HD2.

HTC Nexus One Specifications | Review
HTC HD2 US Preliminary Specifications | Hands-on

source: WSJ via CNET, Engadget

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10 Comments

1. rhomaion

Posts: 187; Member since: Sep 23, 2009

Unlike the story before where it was rumored that DT was going to buy Sprint, this actually sounds logical. This would be a very interesting merger in the cell phone industry and this could potentially help both companies out A LOT! More 4G WiMax anyone?

2. BlackberryUser

Posts: 609; Member since: Jun 26, 2009

Could Sprint buy T Mobile and then enable the GSM portion of their world handsets like the Tour? Have the phone roam on both CDMA and GSM for more coverage?

3. corporateJP

Posts: 2458; Member since: Nov 28, 2009

Well, hopefully it lands into the hands of someone willing to expand their service coverage and grow their business. Compatibility issues are a moot point in this day and age as well. Sprint bought Nextel some years ago, and they were using different bandwidth and technology. Recently, Verizon had to divest some "incompatible" Alltel networks to AT&T and vice-versa. All they had to do was switch out equipment and blocks at cell sites. Sure, it cost some money, but it was doable.

4. Samot9

Posts: 18; Member since: Dec 02, 2009

Ill just say if sprint buys tmobile ill be GONE. theres only one thing i HATE worse than VZW and AT&T and its sprint. FU SPRINT

5. JeffdaBeat unregistered

Here's the deal. The Sprint Nextel merger was headed by the idiot that ruined Sprint in the first place. I think a Sprint/T-Mobile merger could be done very well as long as it is done correctly. There should be an immediate push towards a certain technology. If WiMAX is what all Sprint phones will be going to nationwide with the fall back being CDMA, then that should be pushed from the start. If GSM and LTE is the plan, then every move should be made to convert CDMA customers to GSM...like completely replace the phones in the stores with GSM. I know they'd lose a lot doing something like that. They'd have to filter through the new phones they have coming through the pipeline as well. But a year out, all the phones should be geared towards one technology. Will this happen, no. AT&T would be a better bet, but I doubt the government would allow that. I still think the Alltel purchase shouldn't have gone through. But if AT&T bought T-Mobile, there would be AT&T, Verizon, and Sprint (still bleeding customers). The last thing I'd want is AT&T and Verizon and just a bunch of regional carriers.

6. 203RichBoy

Posts: 76; Member since: Dec 15, 2009

T-Mobile should aquire small GSM carriers if any still even exist to expand coverage and remain competitive.

7. Cali_E

Posts: 196; Member since: Sep 24, 2008

ur dumb

8. DOGIEFRESH

Posts: 316; Member since: Jul 15, 2009

Am not sure why tmobile USA is not the same strong carrier like big bro in Germany, DT is provably the 4th larger carrier in the world with presence in many countries but for some reason they haven't done a good job in the states, specially with their 3g frequency....!!!!!!

9. dorky24

Posts: 23; Member since: Apr 22, 2009

tmo came in too late to the game in the US. Had they come earlier, and made better merging decisions, Tmo could have been a force to reckon with. Now, its more difficult to do so. IF they can merge with Spring in a somewhat logical manner, it will boost their market share, albeit not by much. ATT and Verizon are still the biggest.

11. therygy

Posts: 94; Member since: May 24, 2010

And one year later... AT&T is attempting to buy tmobile

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