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fAcEtIOUs
Premium
join:2002-03-03
kudos:4

Sounds like DT looking to dump T-Mobile

All the different rumors ultimately come back to one idea - DT wants to dump T-Mobile. DT must be losing money on T-Mobile and really wants to offload this albatross around their neck. I get the feeling they don't see a bright future for them in the U.S.

hottboiinnc
ME

join:2003-10-15
Cleveland, OH
Reviews:
·WOW Internet and..

TMO is DT's cash cow. After all the mergers over there to stay in the game we're supporting them. Have you ever seen how many wireless carriers they have in some of the areas? Manchester England has over 5 carriers, try that here in the USA. By the way- they ALL offer no contracts and can pretty much use any phone.
--
www.two-pugs.com www.twopugsbrand.com



burgerwars

join:2004-09-11
Northridge, CA

reply to fAcEtIOUs
I read somewhere that T-Mobile USA has something like 30 million customers. While that's behind AT&T, Sprint and Verizon, that's still a lot of customers that DT would leave behind. I'm unsure how many they have in Germany, but I don't think it can be more than that, and if so, not by much.

I don't think DT is about to just walk away from such a huge base of customers. Losing money or not losing money, all those customers would be a base for any future services they may offer. Would they really want to just dump it all? I don't think so. They're better off trying to do an IPO, getting some cash flow, then using that to beef up their US network.



fAcEtIOUs
Premium
join:2002-03-03
kudos:4

said by burgerwars:

I don't think DT is about to just walk away from such a huge base of customers. Losing money or not losing money, all those customers would be a base for any future services they may offer.
Walk away sounds like they would lose a lot of money. But spinning them off as an IPO or selling them to someone else brings a ton of cash to DT. I think this is more about DT not wanting to continue doing business in the US and using the sale proceeds to invest in the EU markets.


tiger72
SexaT duorP
Premium
join:2001-03-28
Saint Louis, MO
kudos:1
Reviews:
·T-Mobile US

reply to fAcEtIOUs
This probably has more to do with just firming up that bottom line. They can have TMOUSA go public without giving up control of the company. TMO still turns a profit, so I don't really see how they're an albatross around the neck of Deutsche Telekom.
--
"What makes us omniscient? Have we a record of omniscience? ...If we can't persuade nations with comparable values of the merit of our cause, we'd better reexamine our reasoning."
-United States Secretary of Defense (1961-1968) Robert S. McNamara



Gbcue
Almost P.E.
Premium
join:2001-09-30
Santa Rosa, CA
kudos:8

reply to burgerwars
Yes, in this country, there are 34 million subscribers.

Across DT's global network, there are 150.90 million subscribers.
--
My Blog 2.0



en102
Canadian, eh?

join:2001-01-26
Valencia, CA

Yup - its all relative.
This is not much different than Nextel/Sprint (iDEN/CDMA) or even larger 500 million CDMA customers globally to 4.2 billion GSM/UMTS based.

Business decisions some times require selling off one asset to support the core business.


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