An interesting report out of Bloomberg this afternoon regarding T-Mobile and it’s parent company Deutsche Telekom. It appears that Deutsche Telekom is looking at the options of selling their T-Mobile Netherlands business, which is said to be worth around $5.7 billion. According to a person familiar with the matter, it appears Deutsche Telekom wants to sell T-Mobile Netherlands in an attempt to clear up debt in the US and buy more spectrum in the US. You might be scratching your head right now. Because for years, Deutsche Telekom wanted out of the US. But it appears now, they want more business in the US. Currently there’s no word on if Deutsche Telekom will really sell T-Mobile Netherlands, but the idea is there, and being explored.
With the incentive auction set to take place in January, and being the last low-band spectrum auction for quite some time, it’s a very important auction for T-Mobile US. Braxton Carter has stated that T-Mobile wants to buy 600MHz spectrum to compliment the 700MHz spectrum they recent bought from Verizon, to help expand their coverage. They are also looking to grab 600MHz spectrum in metro areas to help bolster their existing coverage.
This really shows that Deutsche Telekom not only has faith in T-Mobile US, but also in CEO John Legere. Who has admittedly been a bit childish at times, but has done what is needed to turn around the company. Before Legere took over the CEO position at T-Mobile US, the company was losing over half a million customers per quarter. Since taking over, they have added at least 1 million each quarter, and has now become the third largest carrier in the US. Although still far behind the “duopoly” of AT&T and Verizon.
Deutsche Telekom looking to help T-Mobile US get more spectrum in upcoming auctions is a pretty big deal. It means that T-Mobile US will have a bit more help in terms of actually succeeding in these auctions, even with the likes of AT&T and Verizon there with their huge checkbooks. This is going to be a very interesting auction come January. One that all Americans should definitely keep an eye on.