T-Mobile USA may be Sold Off by Year End

[Mike Temporale]

<div class='os_post_top_link'><a href='http://www.washingtonpost.com/wp-dyn/content/article/2005/07/04/AR2005070400310.html' target='_blank'>http://www.washingtonpost.com/wp-dyn/content/article/2005/07/04/AR2005070400310.html</a><br /><br /></div><i>"Deutsche Telekom has been sounding out institutional investors on whether to sell off U.S. mobile operator T-Mobile USA or spend billions of dollars to expand the business, according to fund managers. Deutsche Telekom and T-Mobile USA officials declined to comment on what they called market rumors. In a series of one-on-ones meetings with major investment funds, Chief Financial Officer Karl-Gerhard Eick and other executives of Europe's biggest phone carrier told fund managers a decision would be made by the end of the year. But many investors are skeptical a buyer will emerge and question whether there was a sensible way to spend the $30 billion Deutsche Telekom could raise in a sale, and hope T-Mobile USA might need less investment if it goes on its own."</i><br /><br /><img src="http://www.smartphonethoughts.com/images/tmo.gif" alt="User submitted image" title="User submitted image"/><br /><br />Gulp! It looks like the carrier landscape in the US hasn't settled down yet. I thought we had seen all the sales and mergers for a good while - Guess not!

[Ed Hansberry]

T-Mobile is just too small. Too bad too because I love their service. The only option is to be swallowed by Cingular or to change technologies and abandon GSM, at which point it is worthless.

Not good IMHO. I have some friends and coworkers that were AT&amp;T and have said the merger into Cingular has been a nightmare.

[gcherian]

What I wish that Vodaphone would buy them and infuse some money to make them a decent competition. That's what the industry needs.....

George

[cortez]

man, i hope T-Mobile doesn't go away...i'd have to pay Cingular twice as much as i'm paying T-Mobile for cell service and unlimited internet access.

[Jerry Raia]

Cingular may buy them! 8)

[Stinger]

What I wish that Vodaphone would buy them and infuse some money to make them a decent competition. That's what the industry needs.....

The problem is that Vodafone already owns 44% of Verizon Wireless. They would have to ditch that investment before making a move for T-Mobile USA and that would be a very risky strategy.

I don't really see who else would buy T-Mobile USA though. Hutchinson (owners of the 3 brand) perhaps? They seem to have money to burn.

[mpaquette]

Nooooooooooooo :( I had a bad case of "the grass is greener" earlier this year and I switched to Cingular from T-Mobile. Bad move on my part. Coverage really isn't any better in my area, spotty GPRS availability and more expensive plans. I've been counting down the days until my 12 month contract is up so I can switch back. Come on Deutsche Telekom, invest the money to make the U.S. T-Mobile even better.

[possmann]

Actually I'm not that surprised by this post. While I have been a long time T-mo user (over 6 years now) I have always had the feeling like T-Mo USA is treated like a "red-headed step child" for T-MO. Outside of their initial investment and oustanding rate plans, they really haven't done that much (I should also mention unbeatable customer service). I mean their selection of phones is to yawn at. T-Mo (parent) seems like they stay on top of the edge while T-Mo USA kinda follow behind - doesn't want to make waves or take risks. It's too bad because their rate plans are very hard to beat.
I don't think the FCC would let Cingular buy T-Mo.

[gryph0n]

To everyone out there who was a little excited about the idea of T-Mobile USA packing up its things and heading to greener pastures (under management of its own or, say, Cingular’s), we’ve got some bad news. Looks like the execs at Deutsche Telekom haven’t been reading Engadget, because only now did they respond by stating the reports of their discussions of selling their US assets were “purely fictitious”, and no such talks even took place. So they basically called out the Wall Street Journal as just making stuff up? Ok, DT, we’ll believe you, whatever, but this he said she said business is pretty silly...

From Engadget (http://www.engadget.com/entry/1234000537049383/)