Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

T-Mobile USA Reportedly On Selling Block

Deutsche Telekom is seriously considering selling its T-Mobile USA business unit, according to news reports that surfaced over the weekend.

The Reuters news service, among others, reported that Deutsche Telekom earlier this year discussed the possibility of selling its U.S. wireless unit with at least two major investment banking firms. The company will decide T-Mobile USA's fate by the end of the year, Reuters quoted unnamed sources as saying.

"There were several meetings with (Deutsche Telekom CFO Karl-Gerhard) Eick in which they were testing what our reaction would be," Reuters quoted the manager of one large German investment fund as saying. The news service also cited the manager of another large German fund that the meetings took place in March.

The Wall Street Journal reported that the sale could fetch as much as $30 billion, although the buyer would have to spend a lot of money to upgrade the network to 3G cellular data service, an upgrade T-Mobile has not yet started in earnest.

The sale of T-Mobile, if it occurs, would complete consolidation of the U.S. cellular market. Cingular acquired AT&T Wireless last year and Sprint is in the process of acquiring Nextel, a deal that is expected to close later this year. Including Verizon Wireless and T-Mobile, that would leave four national wireless operators in the U.S.

  • 1