Deutche Telekom AG Says Majority Shareholder Sale In T-Mobile USA Is Unlikely
While Deutsche Telekom AG would have loved to sell its ownership stake in T-Mobile USA to AT&T Wireless for $39 billion the European wireless giant now admits that such a sale in the future is unlikely, at least if the company attempts to sell the entire wireless firm to another US carrier.
Speaking about the obstacles for the future Chief Executive Rene Obermann told shareholder at Deutsche Telekom’s annual general meeting in Cologne:
“We continue to look for a long-term solution to improve earnings in our U.S. business. However, a complete sale like the one to AT&T is considered unlikely.”
T-Mobile is the fourth largest wireless carrier in the United States and since the merger failed Deutsche Telekom has been attempting to turn around the company’s profits.
As part of its expanded efforts T-mobile announced in February that it will soon roll out a 4G mobile network based on the popular LTE technology already being touted by AT&T and Verizone Wireless. That plan will cost the company $1.4 billion in new investments over the next two years.
T-Mobile was the last of the major wireless carriers in the United States to upgrade its current 3G network which has caused it to fall behind its competitors. T-Mobile is also the only major US wireless carrier not selling the Apple iPhone line of devices which caused the company to lose a mounting number of customers in Q1, 2012.
T-Mobile recently announced plans to consolidate its customer services centers in the United States, a move that will cause the company to fire 1,900 workers.