Deutsche Telekom Might Actually Keep T-Mobile USA

September 29, 2014 - Written By Phil Bourget

Deutsche Telekom has been an interesting company for us folks in the United States.  DT, as we are going to shorten it to for ease of reading, operate T-Mobile in the States, the Big Magenta as some know the company.  The company that has been making radical changes, and other larger carriers are following behind in their successful footsteps.  But it hasn’t always been that way. T-Mobile USA has had its share of success and fame as well as headline time recently, but before CEO John Legere, the pink carrier suffered year after year of abandoning customers and harsh times.  DT has historically been looking for the right parent company to replace it, and buy T-Mobile USA from them.  We heard of AT&T trying to buy them years ago, and recently we had Softbank the owners of Sprint, try to get it approved.  And in even more recent times, we heard of a little French upstart carrier called Iliad make a bid that was far too low for DT to even really take seriously.

DT, however, might have had a change of heart.  And that seems like great news.  DT might actually keep T-Mobile USA.  Yes, the surprise is actually huge for anyone that knows how hard DT was marketing the fact they wanted out of the United States.  What is the reasoning behind this drastic change of heart, you may be asking? Well, T-Mobile needs money to improve itself, and DT has seriously avoided doing the heavy investing, especially now coming into the huge frequency auction that might actually see DT as the current owners of T-Mobile.  DT looks to either have Iliad bump up its offering price from around $30 per share to $40 or keep it and improve upon the great network’s physical means and money flow.

T-Mobile might become the great network it has shown the capacity to be, and this might happen specifically because DT will hold onto it and be able to flow some cash into its system.  DT also hopes to keep its current larger size (it would be markedly smaller if it sold T-Mobile) and that would only further the problem of Europe and its carrier consolidation efforts.  Will Deutsche Telekom hold onto T-Mobile USA, because many of us certainly hope so and really want to see what T-Mobile with a little money to spend can really do.  Think they’ll keep Big Magenta?  Let us know down below.