Deutsche Telekom Considering T-Mobile USA Spin-Off

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posted Feb 4, 2010, 5:09 PM   by Eric M. Zeman

According to sources cited by the Wall Street Journal, Deutsche Telekom is weighing options for its T-Mobile USA property. One possibility would be to hold an initial public offering for the unit to build capital that could be used to offset the costs of building out T-Mobile USA's 3G network. The other consideration is an outright sale of the unit to another company or group of investors. Deutsche Telekom's shareholders have been consistently unhappy with T-Mobile USA's financial performance. T-Mobile USA is the fourth largest network operator in the U.S., trailing AT&T, Sprint and Verizon wireless, with about 14% of the market. Deutsche Telekom is talking to banks about what to do, and will make a decision some time in the next couple of months. Finding a buyer in the U.S. market will be difficult, as an acquisition by AT&T would likely run into regulatory hurdles, and Sprint and Verizon use different technology to run their networks.

more info at Wall Street Journal »

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