Deutsche Telekom Considering T-Mobile USA Sale To Sprint?

If you may recall, just last week, Deutsche Telekom CFO Timotheus Hoettges ruled out rumors of DT selling its U.S branch. But now, a new report from Bloomberg suggests that Sprint is in talks with DT to acquire T-Mobile USA.

According to people with knowledge of the matter, Sprint Nextel Corp. and Deutsche Telekom are holding meetings to discuss a possible acquisition. Citing multiple anonymous sources, Bloomberg states that discussions have been on and off between the two companies and they haven’t been able to agree on a valuation of T-Mobile USA.

When asked to comment, Deutsche Telekom Chief Financial Officer Timotheus Hoettges said only that the company “could sell all or part of the U.S. business, and all options are open.”Hoettges also stated that, “We’re [Deutsche Telekom] flexibly positioned,” claiming that DT is working on several options. “We’re not under pressure. We want the best solution.” Sprint declined to comment.

Could we really see our beloved T-Mobile USA acquired by Sprint?

[Via Bloomberg]

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  • http://pulse.yahoo.com/_37YSXKDDU6NMWLH3DQZOT2NIJE Benedict

    I left Sprint to go to T-mobile because the customer service and coverage was horrible. With my contract expiring in a few weeks, I’ve been teetering between staying and going to the evil Verizon. If T-Mo gets bought out, Verizon here I come (with my fully loaded family plan)

    • Anonymous

      I took a $200 hit just to leave Sprint and their swiss cheesed coverage umbrella. I would probably go to VZW as well if T-Mobile gets all disfunctional on us.

  • Garciagil31

    And what about tmobile PR

  • Garciagil31

    And what about tmobile PR

  • Nardva

    T Mobile USA just doesn’t get how the USA cell phone market works. They need a better marketing team. It’s funny how T Mobile was the first to have Android phones but Verizon was the company that made Android relevant. It’s funny how T Mobile and HTC are close but T Mobile got the obsolete HD2 with a OS that was at the end of it’s life cycle and Sprint got the jaw dropping Evo with Android about a year ago. T Mobile just doesn’t get it.

    • http://twitter.com/mrjlwilliams J. Williams

      WOW. You are so right on this one, I have to give it up. You have pointed out some valid points, and I don’t know how anyone could not see this either. Oh well…

      • Anonymous

        It’s funny how your being sarcastic.

      • Anonymous

        It’s funny how your being sarcastic.

    • http://twitter.com/mrjlwilliams J. Williams

      WOW. You are so right on this one, I have to give it up. You have pointed out some valid points, and I don’t know how anyone could not see this either. Oh well…

    • my 2 cents

      “the jaw dropping Evo”?? Your right that thing is jaw dropping.. it weighs a ton! If the EVO were to hit you in the face you’d have serious damage there.

  • Nardva

    T Mobile USA just doesn’t get how the USA cell phone market works. They need a better marketing team. It’s funny how T Mobile was the first to have Android phones but Verizon was the company that made Android relevant. It’s funny how T Mobile and HTC are close but T Mobile got the obsolete HD2 with a OS that was at the end of it’s life cycle and Sprint got the jaw dropping Evo with Android about a year ago. T Mobile just doesn’t get it.

  • http://twitter.com/mrjlwilliams J. Williams

    I think if T-Mobile is bought out by sprint, I’m going to cancel my Cell phone service all around, lol. I hate sprint…they suck bad!!!!!! I will find a nice pager service, and call it a day. Damn it!

  • BigMixxx

    Really believe it’s the other way around. Maybe we will see a different company headed by t mobile…Sprint may want to get out of the wireless business and lease back into the service. That’s what seems to make more sense to me. Sprint while gaining in the customer base, has lost a ton of money over the last 3 years.

    Sprint’s operating costs and overall margin’s are extremely HIGH when compared to t mobile. Sprint, on the CDMA network has about 35 million customers, I don’t see them snatching back that business, but I do see a possiblity of Sprint putting that up for sale. Sprint is not loosing as much money as it once did, but still, in wireless they are loosing money, while still gaining a good customer base.

    With operating costs of less than 5 billion compared to Sprint’s damn near 30 billion, I do believe that it would be a merger in name only or rebranding of Sprint. They have an amalgamation of a bunch of networks, I personally think there will be a divestiture of the sprint amalgamation. That will make the new company, still…number three…and the profit margin that t mobile enjoys may slip.

  • http://twitter.com/mrjlwilliams J. Williams

    VONAGE HERE I COME…LOL.

    • Anonymous

      HA

    • Anonymous

      HA

  • http://twitter.com/Surrealistwave Surrealistwave

    Carly is MINE!!!! If Sprint and t mobile usa merge, we going to go into exile in Germany.

  • http://twitter.com/Surrealistwave Surrealistwave

    Carly is MINE!!!! If Sprint and t mobile usa merge, we going to go into exile in Germany.

  • Josh.

    Sprint can’t even get their IDEN and CDMA to play nice together….throw GSM into the mix and disaster is on the horizon. C’mon T-Mo. I’ve put so much faith in you and stuck by your for years……Don’t do this to me!

  • Josh.

    Sprint can’t even get their IDEN and CDMA to play nice together….throw GSM into the mix and disaster is on the horizon. C’mon T-Mo. I’ve put so much faith in you and stuck by your for years……Don’t do this to me!

  • +_+

    :’(

  • +_+

    :’(

  • http://pulse.yahoo.com/_GRIFVUHCR7SCF2J4ACDIVSVGJM Hilton T.Y

    I really hope not. I choose to keep T-mobile over Sprint because the customer service at T-mobile is second to none. I have a friend at work who has three of the same sprint android phones and he had to talk to all kinds of levels of support all the way to executive services to fix problems with his phone randomly not working with 4 bars of service or text messaging taking hours to work. What makes it worse, my company is sponsored by sprint so they have wireless repeaters throughout the campus and our desks are right under one. Sprint support has gone as far as to blame his problems in Virginia on a snowstorm in Kansas. A Sprint store employee told him he didn’t know his phone was updated to Froyo. An employee later told him they were working on his tower and it should be fixed last week. Nope. Still calling Sprint every other work day. :)

    Conversely, in 5 years, my main problems with T-mobile have been self induced fees for texting too much which was my fault and they still refunded and the Vibrant GPS, which they were willing to trade the phone for a G2 but I fixed it myself by rooting.

  • LRC

    The irony is that I left Sprint to come to T-Mob, and haven’t looked back. “I have a bad feeling about this.” –Han Solo

    • Anonymous

      The irony is, I left tmo (because my wife’s been with sprint10+yrs- and consolidated bills to save money) and now it looks like I’ve left for no reason. I had planned on coming back to tmo as soon as this contracts up but,apparently there’s no need now!! I love my evo but, love tmo better.

  • Mike Marquez

    One of the rumors that I’ve heard and would prefer to see is that if once Sprint decides to change their 4G from WiMaxx to LTE, once LTE is in place, Deutsche Telekom would buy Sprint. Hopefully, the change in the type of networks doesn’t take longer than the switch from TDMA to GSM when AT&T and Cingular merged. Sprint right now is considering the switch; and they have often said that switching from WiMaxx to LTE is not difficult. With this claim and the rumor of Deutsche Telekom buying them if they go to LTE, this looks very profitable with T-Mobile’s USA prices and customer support. Consumer Reports has always ranked them Number 2 in both performance and customer service since 2003.

  • Beaker151

    This could be very bad for me as I have a extremely bad relationship with sprint. I had a major dispute with them over a business account I had that resulted in me being removed from the store by the police. Needless to say I walked from my contract owing them more than $3000. I received a letter from sprint stating that I’m classified as a dangerous and hostile person and would no longer be accepted as a sprint customer and demanded I pay the balance of the contract. So if this does happen I maybe forced to find a new provider, and I have been very happy with tmobile so talk about the past coming back to bite you.

    • Trblteeroy

      Man dont feel bad the same thing happened to me minus the police so i cant go back either

      • Beaker151

        Well smashing your cell phone on the store counter in front of the store manager is a sure fire way to have the police show up. Not one of my finer moments but I felt it showed my level discontent. Oh well who said growing up was easy.

        • Lqtm

          Did that make you feel like a tough guy? Lmao!

  • Tntgeb

    Well I am with the crowd on this one. Sprint service does not present itself well and if they do sell to Sprint, I hope that they give us long time customers an option to get out without the penalties. ATT or Verizon here I come.

  • doncorleone

    Look up LightSquared and look up the archives on Sprint and T-Mobile’s interaction with them over the past few months. Then look at T-Mobile’s comments recently that they will sell off the tower assets. The issue is migrating to an LTE platform and not squandering funds to get there. Therefore, TMO is cooperating with Sprint and instead of competiting for spectrum and competiting for capacity on LightSquared’s network, they are coorperating.

    What customer will get, after kinks are worked out over 2 years by engineering, is a fast network with equal upload-download and a brand that has 1/3rd+ market share in every major metro in the US. In fact, they would trade for #1,2,3 in certain areas where ATT-Verizon are lacking. It will be announced soon, then will take 3 years through Fed Hearings for anti-trust. Phil Humm has a track record for doing this, but what he typically does is to have TWO brands operating-dominating and sending money to one parent company. So what we’ll have is one effective network in the end with great coverage.

    Judge Sprint not by what they have been, but where they’re going. That’s a true turn around, and that’s what Humm is claiming TMO to be doing. Sprint got 1.1million customers in Q-4. That’s lights out and it’s mostly marketing, for which TMO should take cues.

    • M2gmarquez

      Not that I doubt your info., but could you back them up with some URL’s? I have a few friends on both Sprint and T-Mobile that would love to hear and read what you just mentioned.

    • M2gmarquez

      Not that I doubt your info., but could you back them up with some URL’s? I have a few friends on both Sprint and T-Mobile that would love to hear and read what you just mentioned.

  • Quagmeyer

    This is great!! Made my day. Oh yeah! EVDO and HSPA+. Lets see who gets to 4M first…..

    Gigity
    Gigity
    Goo

  • Quagmeyer

    Carly will go the way of Catherine Z Jones.

    Coincidence that they look alike???

    You be the judge.

    Gigity
    Gigity
    Goo
    Alright!

  • Stewie

    Stop it already

  • Stewie

    Stop it already

  • http://www.wolfecs.biz Wolfepakt

    Like everyone else, I will say IF (and it looks like a long shot reading the bloomberg article) this happens, I am either going to Verizon or Union ( a local wireless co here in Wyoming).

  • http://www.wolfecs.biz Wolfepakt

    Like everyone else, I will say IF (and it looks like a long shot reading the bloomberg article) this happens, I am either going to Verizon or Union ( a local wireless co here in Wyoming).

  • Quagmeyer

    You know you want the mifi Stewie. You want it bad.

    Gigity
    Gigity
    Goo
    Alright!

  • Quagmeyer

    You know you want the mifi Stewie. You want it bad.

    Gigity
    Gigity
    Goo
    Alright!

  • macman

    doncorleone,

    Not that I doubt your info., but could you post some links to back them up? i have a few friends with both T-Mobile and Sprint that would like to read about what you just mentioned.

  • John

    Wish Verizon would buy t-mobile. Get better coverage then.

    • jay_max

      Better coverage, slower speeds, higher prices… I’ll pass, thanks.

      • Jfkjk

        Slower speeds??

      • Jfkjk

        Slower speeds??

    • jay_max

      Better coverage, slower speeds, higher prices… I’ll pass, thanks.

  • Anonymous

    Man is there a network without problems in the USA?
    AT&T-Shitty coverage, dropped calls, worst customer support
    T-Mo-Bad Coverage, not many great phones
    Sprint-Wimax slower than most other 4Gs, coverage not that good
    Verizon-Only company with good coverage, slow 3G, expensive

    • Senor Chang

      Soooo… the ONLY bad thing about VZW is cost? Looks like I know where I’m going if Tmo gets bought out.

      But these buyout rumors crop up ever year… we’ll see.

      • http://cosmicbreeze.tumblr.com/ DtheArtist

        Slow 3G? “Verizon-Only company with good coverage, slow 3G, expensive”

      • Anonymous

        Also CDMA is a draw back for a lot of people because they can’t truly use it as a “world phone” unless they want to rack up insane roaming charges.

  • claudia64

    I wouldn’t mind terribly. I have my family on a 2-year contract with T-Mo, and we live in a town limited to EDGE. If we were with Sprint, we’d have 4G.

    • aLb3Rt

      + $10 a month on every line ;) I’d rather have metropcs worse comes to worse

      • claudia64

        The extra $10 does suck, aLb3Rt; I’ll grant you that. But my choices are: 2 GB of EDGE-only with AT&T for $25; Unlimited EDGE-only with T-Mobile for $30; Unlimited 3G with VZW for $30; Unlimited Sprint 4G for a total of $40. For my money, the best value is Sprint. The only reason I’m with T-mobile is because they’re inexpensive and my family has lots of access to WiFi. If I lived in a big city where all the major carriers offer 3G or better, then, sure, Sprint would be last on my list of desirable carriers.

  • TMoFan

    I’ve been with T-Mobile since the VoiceStream days, and have had many opportunities to change carriers but never did since T-Mobile provides me with great CS, a grandfathered in plan that I’m allowed to keep, and great prices. A friend had the worst experience with Sprint and I have no intention of dealing with their hideous CS first hand. Hope T-Mobile can find another way.

  • MagentaStar

    If T-Mobile goes to Sprint, then I’m cancelling my service….case and point.

  • MagentaStar

    If T-Mobile goes to Sprint, then I’m cancelling my service….case and point.

  • Anonymous

    I’d cancel my US Passport and leave USA for good if it happens. The sky is falling down.

    • whosaidwhat

      You would think so with all these comments. LOL

  • aLb3Rt

    screw this. am moving back to timbaktu! And am taking Carly with me! harharhar

  • JLo

    If Sprint buys T-Mobile I’m definitely switching carriers. The only reason to stay with T-Mobile is their customer service (which is slowly getting worse and worse). If sprint buys them, they will definitely be crap.

  • JLo

    If Sprint buys T-Mobile I’m definitely switching carriers. The only reason to stay with T-Mobile is their customer service (which is slowly getting worse and worse). If sprint buys them, they will definitely be crap.

  • http://openskymedia.com Jason

    I’ll go to verizon if it happens. There is no way – let me repeat it in case we aren’t clear – THERE IS NO FREAKING WAY will I EVER go back to Sprint or some crazy company that Sprint is involved in.

  • http://openskymedia.com Jason

    I’ll go to verizon if it happens. There is no way – let me repeat it in case we aren’t clear – THERE IS NO FREAKING WAY will I EVER go back to Sprint or some crazy company that Sprint is involved in.

  • Rickdsf

    God forbid! T-Mobile should buy Sprint. Deutsche Telecom is one of the major mobile companies in the world. It is a much stronger company that Sprint will ever be and it is absurd that the investors in Deutsche Telecom don’t see the potential in T-Mobile. Other non-American companies would give their eye teeth to just get into the US market. Deutsche Telecom is a major player here. How can they give up such potential? Quick profit will not offset the possible long term profit. The sad part is that for the first time, the German company is thinking like an American company: quick profits and no long term plan.

  • risdx

    I guess if this happens GSM is history and would be phased out in two or three years. This was the main reason I was with T-Mobile followed by pricing and customer service.

    • Anonymous

      No, I don’t think so. Doesn’t sprint want LTE? Isn’t everyone going LTE? LTE is based on GSM.

  • Temporary_253

    Actually what’s being discussed isn’t really a sale of TMobile from what I read in the Bloomberg article. In fact that’s the one thing they’ve apparently ruled out. The key here is that TMobile needs to do some serious infrastructure building and spectrum acquisition. Sprint, through Clearwire, has lots of spectrum but is in deep financial straits. TMobile could end up becoming a joint venture like Verizon Wireless is (Verizon and Vodafone joint own Verizon Wireless) with DT having deep pockets.

    If the sale happens WiMAX is definitely out. But TMobile has the option of trying to wrest control of Clearwire from a troubled Sprint, going with LightSpeed or buying some of the spectrum that will be going to auction later this year. That’s why their CEO keeps saying they have flexibility. Especially with HSPA+ TMobile has a couple of years before they really hit constraints since LTE doesn’t really get them a lot at this point. It’s all about finding the most effective way of financing the infrastructure. Frankly having 4 big players in a market generally doesn’t last so sooner or later I’d expect an acquisition. If Sprint was in better shape we might have seen something like them acquiring US Cellular, Cricket or MetroPCS but right now TMobile is the only one with deep enough pockets to make a reasonable partner.

    • http://cosmicbreeze.tumblr.com/ DtheArtist

      I can cope with this, just not a T-Mobile USA sellout to Sprint.

  • Peter Fitzenwell

    If Sprint buys Tmo im going back to PrimeCo :p

  • Uncle Paul

    Great, I just left T-Mobile’s shitty network and bullshit 5GB data cap for EVERY WHERE I GO 3G and NO DATA CAP Sprint. Hopefully if Sprint buys Magenta they don’t take on the lame 5GB cap…if so…I’m going 1985 and no cell phone.

  • Uncle Paul

    Great, I just left T-Mobile’s shitty network and bullshit 5GB data cap for EVERY WHERE I GO 3G and NO DATA CAP Sprint. Hopefully if Sprint buys Magenta they don’t take on the lame 5GB cap…if so…I’m going 1985 and no cell phone.

  • http://twitter.com/iFlossHIC iFloss™

    Alright, now how easy is it to confuse that for them buying spectrum or buying part of SprintNextel???

    I doubt that’s going to go down, especially since they’re in a favorable position

  • http://twitter.com/iFlossHIC iFloss™

    Alright, now how easy is it to confuse that for them buying spectrum or buying part of SprintNextel???

    I doubt that’s going to go down, especially since they’re in a favorable position

  • Anonymous

    I have mixed feelings about this. I have been contemplating a move away from T-mobile due to poor coverage in Phoenix but if this merger or acquisition improves the two companies then I am all for it. The one thing that bothers me is there will now be even less competition and consumers usually get screwed when that happens…