 ThrowDemsOutIf you can't convince 'em, confuse 'emPremium join:2002-03-03 Mullica Hill, NJ 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. | |
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·WOW Internet and..
·Time Warner Cable
| Re: Sounds like DT looking to dump T-Mobile 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 | |
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 |  | | 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. | |
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 |  |  ThrowDemsOutIf you can't convince 'em, confuse 'emPremium join:2002-03-03 Mullica Hill, NJ kudos:4 | Re: Sounds like DT looking to dump T-Mobile 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. | |
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 |  |  GbcueAlmost P.E.Premium join:2001-09-30 Santa Rosa, CA kudos:8 | Yes, in this country, there are 34 million subscribers.
Across DT's global network, there are 150.90 million subscribers. -- My Blog 2.0 | |
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 |  |  |  en102Canadian, eh? join:2001-01-26 Valencia, CA | Re: Sounds like DT looking to dump T-Mobile 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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 | | T-Mo Merger If they merged with Sprint they could continue to run a hybrid GSM/CDMA network. Since T-MOUS 3G runs on different frequencies, I'd love to be able to run my netbook CDMA card on my T-Mobile account. Data would probably be cheaper too. | |
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 |  | | Re: T-Mo Merger Sprint has done well running two networks (CDMA and iDen) why not add another? | |
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 |  |  Sammer join:2005-12-22 Canonsburg, PA 1 edit | Re: T-Mo Merger Apparently Sprint isn't interested, but TMO USA might be able to acquire both Metro PCS and Leap Wireless. A problem with CDMA and GSM networks at first but presumably all will be LTE in a few years. | |
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·WOW Internet and..
·Time Warner Cable
| Re: T-Mo Merger and thats what TMO would do. And they'd in turn also buy up Revol Wireless and bring them into the LTE world.....TMO would go flat rate unlimited here and would control pretty much all of the rate plans. -- www.two-pugs.com www.twopugsbrand.com | |
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 | | Interesting...... T-Mo USA alone generates $19 billion in annual revenues. That's nothing to stick your nose up at.
The problem is that the way its setup right now the German government which owns 30% of the combined Deutsche Telekom requires huge dividend payments which prevents DT from reallocating much of that revenue back into the infrastructure of their US arm.
DT was only able to allocate $3 billion in network upgrade costs last year compared to $10 plus billion other carriers spend on their wireless only divisions.
If T-Mobile US can go public and large names can impart huge cash infusions, then the seperate entity can refarm that money into network upgrades/expansion and DT, still a majority owner, will still reap the benefits of profits.
Another option that I can see happening down the road is for Vodafone to force Verizon to buy them out and they could use that cash to buy T-Mobile USA out right. Voda is known for dumping butt loads of cash in network investments much to the dismay of their shareholders.
Of course I'd rather see a US company like Google invest a 20% ownership of T-Mobile USA but not sure if that will ever happen? | |
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 |  GbcueAlmost P.E.Premium join:2001-09-30 Santa Rosa, CA kudos:8 | Re: Interesting...... Google would probably buy T-Mobile outright. | |
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 |  |  | | Re: Interesting...... that would be interesting if they get their customer service fiasco figured out first -- sbcglobal.net speedtest result 11/11/09 - 5256kbps | |
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 |  |  |  GbcueAlmost P.E.Premium join:2001-09-30 Santa Rosa, CA kudos:8 Reviews:
·AT&T U-Verse
| Re: Interesting...... said by John McClane:that would be interesting if they get their customer service fiasco figured out first I don't think so.
If they bought T-Mobile, they've got a whole support staff already. Just more training would be needed for the phone. -- My Blog 2.0 | |
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 |  |  |  |  | | Re: Interesting...... ah yes indeed. i'm a bit slow today. your right. | |
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 |  sam64 join:2006-07-31 Newtown, PA | This has more to do with DT raising cash so that they can invest in the network or make some acquisitions.
By doing the IPO, DT keeps control of the company and raises some serious cash that can be then pulled back into DT, used for network expansion/upgrades or acquisitions.
Smart move if they want to become a serious player in the US market. | |
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