Telecom Timeout

Feb 9 2010   12:53PM GMT

T-Mobile USA spin-off from DT could finance remaining 3G build out

Kate Gerwig Kate Gerwig Profile: Kate Gerwig

The rumors are all over the place. T-Mobile USA may be pushed out of the cozy Deutsche Telekom nest to fund its own build-out with an IPO. Either that or a possible Sprint acquisition. That’s a big either/or. Everyone who’s anyone is talking…including The Wall Street Journal and Business Week (so you know we’re talking serious business story here). As brother-blogger Tom Nolle says, T-Mobile is a valuable property that’s beneffiting from smartphone madness.

The payoff would be for DT investors who have watched a stock downslide even as DT spent almost $3 billion in 2009 building out T-Mobile’s 3G network in the U.S. to keep customers from migrating to AT&T and Verizon Wireless – who are so busy dissing each other they never even mention T-Mobile.</p>

DT reported a loss of 77,000 U.S. mobile customers in Q3 2009, when the company said the T-Mobile USA network covered 167 million people. The goal is to reach 220-230 million when the expansion is done. And that must mean IPO to come up with the cold cash.

 Comment on this Post

There was an error processing your information. Please try again later.
Thanks. We'll let you know when a new response is added.
Send me notifications when other members comment.

Forgot Password

No problem! Submit your e-mail address below. We'll send you an e-mail containing your password.

Your password has been sent to:

Share this item with your network: