Deutsche Telekom CEO Says T-Mobile USA Can Sustain Itself

October 23, 2014 - Written By Jeremiah Nelson


Deutsche Telekom has been trying to sell T-Mobile USA and get out of the U.S. for quite a few years. They tried to sell to AT&T and the Department of Justice rejected that. This year, Iliad SA in France made a bid for T-Mobile USA, but they didn’t offer enough money and Deutsche Telekom turned them down. Now DT’s CEO, Timotheus Hoettges, says that the company is perfectly happy with their U.S. arm. He says T-Mobile USA is perfectly healthy and capable of sustaining itself. “We are looking into the options, but nevertheless we have an independent, self-funding future for our activities in the U.S.,” Timotheus Hoettges said in an interview. “It is a great business, it is a great perspective; we could have a lot of potential to realize in the future.” Sounds to me like they are no longer in the market for a buyer.

T-Mobile USA is growing faster than any other U.S. carrier, and they are the only growing unit that DT has. The American arm of the company is going to require some serious investment in the network, employees, and other areas, if they want to continue to add customers at the rate they have in the past 12 months. Hoettges still thinks that a merger of some of the smaller carriers in the United States can better compete with our two wireless giants, AT&T and Verizon. “These two companies are generating more than 100 percent of the total cash flow of the industry,” he said. “It is much better if there would be a combination or consolidation of smaller players to even attack the bigger players in a more efficient way.”

Even so, they are happy with how T-Mobile USA is growing and think the company can stand on its own. Verizon missed its recent profit investments, while T-Mobile USA grew 1.7 percent. T-Mobile is now valued at $22.1 billion. Any potential buyer will have to pay significantly more than that to make it worthwhile for DT to sell.