Thursday, May 24, 2012

Deutsche Telekom: No takeovers, but merger still on the table for T-Mobile USA

While addressing shareholders at the company's annual meeting in Cologne, Germany, Deutsche Telekom CEO Rene Obermann told investors that a complete takeover of T-Mobile USA was out of the question after AT&T's very public failed bid last year. Obermann did tell investors that it was considering all other options, including a potential merger of its T-Mobile USA business unit with another organization.

There are several options on the table in such a scenario; Sprint has had its eye on T-Mobile USA for a while, and a combined company would present a large competitor to AT&T and Verizon. Such a scenario is unlikely, however, as the technology these companies employ is so different that it would be extremely costly to make the networks compatible.

The more likely potential suitor is MetroPCS, as recent rumors have suggested that the two companies are actively speaking about a possible merger. Bloomberg