Pulse2 Technology and Social Media News » Deutsche Telekom

Deutsche Telekom Considering Selling T-Mobile To MetroPCS

Amit Chowdhry — Wed, 09 May 2012 21:22:03 +0000

About a year ago, AT&T said that they were intending to buy out T-Mobile USA. After massive government regulation, that deal fell through. According to Bloomberg, T-Mobile’s parent company Deutsche Telekom is now considering selling off the company to MetroPCS, the fifth largest carrier in the U.S. MetroPCS and T-Mobile would merge under a single entity or they might sell off the business entirely.

T-Mobile USA Revenue Drops To $20.6 Billion

Amit Chowdhry — Thu, 23 Feb 2012 17:44:39 +0000

Deutsche Telekom has announced today that T-Mobile USA will be launching a high-speed LTE service sometime next year. However the most recent quarter was one of the most brutal for T-Mobile.

“For T-Mobile USA, the past year was characterized by significant challenges, particularly in the fourth quarter, following the market launch of the new Apple iPhone model by the three major national competitors in October,” stated T-Mobile.

In the fourth quarter, T-Mobile USA lost 802,000 contract customers and revenue has dropped 3.3% to $20.6 billion. T-Mobile is the last major U.S. carrier to announce LTE plans. T-Mobile will use a combination of spectrum that was acquired from AT&T and will put in $1.4 billion in additional investment to launch their LTE service.

AT&T To Provide T-Mobile With 7-Year 3G Roaming Deal After Ending Bid

Amit Chowdhry — Tue, 20 Dec 2011 16:17:27 +0000

AT&T Inc. (NYSE:T) is ending their bid for T-Mobile USA. AT&T had announced in March 2011 that they have offered $39 billion to acquire T-Mobile USA from Deutsche Telekom. However AT&T had a hard time getting through all of the legal hoops associated with the acquisition. This is what AT&T had to say about the government regulation:

“The actions by the Federal Communications Commission and the Department of Justice to block this transaction do not change the realities of the U.S. wireless industry. It is one of the most fiercely competitive industries in the world, with a mounting need for more spectrum that has not diminished and must be addressed immediately. The AT&T and T-Mobile USA combination would have offered an interim solution to this spectrum shortage. In the absence of such steps, customers will be harmed and needed investment will be stifled.”

Since the deal flopped, Deutsche Telekom will be receiving a cash payment of $3 billion, which will be going towards paying the company’s debt. T-Mobile will receive delivery licenses for about 128 market areas of AWS spectrum including 12 of the top 20 market. T-Mobile will also get a 7-year UMTS roaming deal. This includes support for HSPA on the 850 and 1900 MHz bands.

AT&T Considering Joint Venture With T-Mobile If Acquisition Falls Apart

Amit Chowdhry — Thu, 01 Dec 2011 16:30:40 +0000

After withdrawing their acquisition approval application from the FCC and having to deal with the U.S. Justice Department, AT&T Inc. (NYSE:T) is weighing what to do with T-Mobile. One idea is that AT&T and T-Mobile parent company Deutsche Telekom would team up for a joint venture by putting their infrastructure together.

AT&T was originally planning to buy T-Mobile for $39 billion. The FCC argued that this would cause job losses and would not lead to cost savings for consumers. The FCC also believed that this would cause network inefficiency.

By combining their infrastructure and resources, both companies would benefit. AT&T would benefit by having access to T-Mobile’s wireless spectrum. T-Mobile would financially benefit from the second largest telecommunications company in the United States.

[WSJ]

AT&T Approached MetroPCS, Leap, Sprint, and Dish Network To Sell Spectrum In Order To Protect T-Mobile Deal

Amit Chowdhry — Mon, 19 Sep 2011 19:37:17 +0000

AT&T Inc. (NYSE:T) has talked to several smaller rivals including MetroPCS Communications, Inc. (NYSE:PCS) and Leap Wireless International, Inc. (NASDAQ:LEAP) to sell spectrum and subscribers. This is in order to save AT&T’s acquisition of T-Mobile USA for $39 billion.

AT&T also reached out to CenturyLink, Inc. (NYSE:CTL), Sprint Nextel Corporation (NYSE:S), and DISH Network Corp. (NASDAQ:DISH) to see if they were interested in buying assets.

AT&T is also preparing to battle the Justice Department in court. The Justice Department sued AT&T on August 31st in an attempt to stop the deal. If the deal does not work out, AT&T agreed to compensate T-Mobile parent company Deutsche Telekom for $3 billion in cash.

[Bloomberg]

Deutsche Telekom Starts Taking Pre-Orders For New iPhone

Amit Chowdhry — Mon, 05 Sep 2011 15:11:51 +0000

Although Deutsche Telekom (DT) does not know the release date or price of the new upcoming iPhone, they have started taking pre-orders as of today any way.

DT is apparently concerned about supply bottlenecks when the new phone is launched. Customers that pre-order the device will be given a coupon when the device goes for sale. The system is first-come, first-serve and one ticket is allowed per customer.

The new phone is expected to launch in October.

[AppleInsider]

U.S. Justice Department Attempting To Block AT&T and T-Mobile Merger

Amit Chowdhry — Wed, 31 Aug 2011 16:58:31 +0000

The U.S. Justice Department has filed a lawsuit to block AT&T Inc. (NYSE:T) to merge with T-Mobile. AT&T proposed a $39 billion acquisition of T-Mobile USA. The Justice Department believes that the acquisition of T-Mobile would “substantially lessen competition.” The complaint was filed in a federal court in Washington. “AT&T’s elimination of T-Mobile as an independent, low- priced rival would remove a significant competitive force from the market,” stated the U.S. in a filing.

If regulators prevent the deal from happening, AT&T would have to pay T-Mobile parent company Deutsche Telekom $3 billion in cash. AT&T would also have to provide T-Mobile with wireless spectrum in certain regions and reduce charges for calls into AT&T’s network. This total package is worth as high as $7 billion.

AT&T’s acquisition of T-Mobile would be a combination of the second and the fourth largest wireless carriers. The combined company would beat Verizon Wireless in terms of subscriber numbers. Sprint would be heavily setback from the acquisition. The lawsuit is under U.S. v. AT&T Inc., 11-01560, U.S. District Court for the District of Columbia (Washington).

[Bloomberg]

AT&T Promises Deutsche Telekom $6 Billion If T-Mobile Deal Gets Blocked

Amit Chowdhry — Thu, 12 May 2011 21:18:07 +0000

AT&T Inc. (NYSE:T) has made a huge financial break-up fee to Deutsche Telekom (DT) if government regulators prevent the $39 billion acquisition of T-Mobile USA. AT&T will pay $3 billion in cash, $2 billion in spectrum, and a $1 billion roaming agreement according to sources with Reuters. If AT&T is allowed to acquire T-Mobile, the combined company would be the leader in the U.S. mobile market above Verizon Wireless. [Reuters]

AT&T To Acquire T-Mobile USA For $39 Billion

Amit Chowdhry — Sun, 20 Mar 2011 23:09:48 +0000

AT&T Inc. (NYSE:T) has announced plans to acquire T-Mobile USA for $39 billion in cash and stock from Deutsche Telekom. AT&T’s acquisition of T-Mobile would make them the largest carrier by a substantial amount.

Around the end of 2010, AT&T had about 95.5 million subscribers and T-Mobile had 33.7 million, which would give them a combined 129.2. Verizon had 94.1 million at the end of 2010.
This deal will most likely face intense scrutiny by the FCC the companies expect the deal to close within the next year.

It wasn’t too long ago there was a rumor floating around that Sprint would acquire with T-Mobile. Integrating T-Mobile with AT&T’s network will be less challenging considering that they both use GSM. AT&T’s last major deal was in 2006 when they acquired BellSouth and renamed it AT&T Mobility. Deutsche Telekom will receive approximately 8% ownership in AT&T.

[BusinessInsider]

Cooliris Raises $9.6 Million In Series C

Amit Chowdhry — Tue, 15 Feb 2011 18:32:51 +0000

Cooliris is a multimedia browser plugin that lets you view photo and video content on the web in an appealing way. The company has raised $9.6 million in Series C financing from investors such as Kleiner Perkins Caufield & Byers, Deutsche Telekom subsidiary T-Venture, DAG Ventures, and The Westley Group. Cooliris has raised a total of $27.6 million in funding. Cooliris plans on using the new round of funding for strategic partnerships and product innovation. [TechCrunch]