T-Mobile USA Still Up For Sale, According To Owners
David Curry | | Jan 20, 2015 03:13 AM EST |
(Photo : Reuters) Deutsche Telekom CEO Timotheus Höttges has confirmed T-Mobile USA is still up for sale, and will go under unless it is sold.
T-Mobile USA had its best year ever in 2014, adding 8.4 million customers and most likely stepping above Sprint as the third largest carrier in the U.S., but it might not be enough.
Deutsche Telekom—the owners of T-Mobile USA—have warned that unless the U.S. carrier is sold it will still go into the black, despite the huge push in 2014.
Like Us on Facebook
Timotheus Höttges confirmed T-Mobile USA does not have the funding to continue operations, and the "Un-Carrier" deals CEO John Legere is pushing in the U.S. remove lucrative profits from the company's portfolio.
T-Mobile USA is still on an operating profit, but when the carrier needs $4 to $6 billion in spectrum investments, it will not be able to salvage that much money and compete with AT&T and Verizon Wireless, according to Höttges.
The previous rumor claimed Sprint would acquire T-Mobile USA with cash from Japanese carrier (and owner) SoftBank, however this deal appears to have fallen through with the new CEO Marcelo Claure taking over operations.
AT&T and Verizon Wireless may be interested in picking up T-Mobile's near 60 million subscribers, but the profit margins are lower on T-Mobile contracts and it is not certain these customers will move over to their new owners.
There are a few potential buyers, including Google who wants its own wireless network to go alongside Google FIber. Google has over $50 billion in the bank for acquisitions, meaning it could go toe-to-toe with Verizon and AT&T.
Amazon and Asian business magnet Li Ka-shing—owner of Hutchison Whampoa—might also be interested in a U.S. wireless service, especially one with large brand recognition and an excellent 2014.
However, no company has openly looked towards an acquisition, possible due to some unforeseen factors T-Mobile USA does not want to share. It is not clear how much an acquisition of T-Mobile USA would cost, but Deutsche Telekom looks anxious to remove the subsidiary by any means.
TagsTim Höttges, Deutsche Telekom, T-Mobile USA, U.S. carriers
©2015 Chinatopix All rights reserved. Do not reproduce without permission
EDITOR'S PICKS
-
Did the Trump administration just announce plans for a trade war with ‘hostile’ China and Russia?
-
US Senate passes Taiwan travel bill slammed by China
-
As Yan Sihong’s family grieves, here are other Chinese students who went missing abroad. Some have never been found
-
Beijing blasts Western critics who ‘smear China’ with the term sharp power
-
China Envoy Seeks to Defuse Tensions With U.S. as a Trade War Brews
-
Singapore's Deputy PM Provides Bitcoin Vote of Confidence Amid China's Blanket Bans
-
China warns investors over risks in overseas virtual currency trading
-
Chinese government most trustworthy: survey
-
Kashima Antlers On Course For Back-To-Back Titles
MOST POPULAR
LATEST NEWS
Zhou Yongkang: China's Former Security Chief Sentenced to Life in Prison
China's former Chief of the Ministry of Public Security, Zhou Yongkang, has been given a life sentence after he was found guilty of abusing his office, bribery and deliberately ... Full Article
TRENDING STORY
-
China Pork Prices Expected to Stabilize As The Supplies Recover
-
Elephone P9000 Smartphone is now on Sale on Amazon India
-
There's a Big Chance Cliffhangers Won't Still Be Resolved When Grey's Anatomy Season 13 Returns
-
Supreme Court Ruled on Samsung vs Apple Dispute for Patent Infringement
-
Microsoft Surface Pro 5 Rumors and Release Date: What is the Latest?