Financial Times Report Indicates Deutsche Telekom Is Talking To Banks Looking To Boost T-Mobile USA

Here’s a new turn of events as a Financial Times report indicates Deutsche Telekom is reportedly talking with bankers hoping to keep their USA branch competitive in the United States. Besides selling T-Mobile USA towers, which could raise between $1 to $2 billion, T-Mobile could also raise additional funds by issuing bonds. Deutsche Telekom is expected to offer more detail on its strategy when it reports its quarterly results in February. According to the Financial Times source, Deutsche Telekom isn’t in a rush to find a long-term solution for T-Mobile. That’s good news, at least for those of us who want T-Mobile to stay T-Mobile and not get gobbled up by yet another potential buyer.

Financial Times (Registration Required), Fierce Wireless

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  • Scarfacemario

    Hope we get the iphone :) and LTE

    • Anonymous

      We will. I predict…..

      • Anonymous

        eventually….

  • Mega G

    There AREN’T any other ‘potential buyers’.  No ones else in the US could afford T-Mobile.

    • Anonymous

      Unless you’re talking about a Microsoft or Google.

      • Frank Jacobs

        But neither of them are interested.

  • Littlesis1774

    COME ON IPHONE

    • Mega G

      The only thing that will happen is a Pentaband iPhone (iPhone 5 maybe) that is unlocked.  Just like what Google just did with the GSM version of their Galaxy Nexus.

      IOW.. a T-Mobile-USA specific iPhone will never happen.

      • Anonymous

        Why do you say this???  The fact that Cellular South sells the iPhone (C-Spire) makes it seem more like a technology issue than a financial one.  US Cellular was offered to sell the iPhone as well.  They’re both CDMA, it’s the same model technology wise Verizon and Sprint use.

        • Anonymous

          Because the Iphone currently does not have 1700MHZ. Gonna need that for it to work. 
          Unless you live in Birmingham. Then you have a pocket of 30 sites that are 1900MHZ. I Phone works fine there…

        • http://pharaohtechblog.blogspot.com/ Conan Kudo (???????)

          When the iPhone comes with LTE, it will have to include the AWS band. Since the iPhone uses multi-mode antenna systems, it can be configured to use AWS for CDMA2000, HSPA+, and LTE.

        • Anonymous

          Kudo, what do you think are the chances of T-Mobile launching an AWS capable iPhone 4s before the next iPhone comes out?  If that were ever to come to reality, T-Mobile could rightfully market they have the best coverage of the fastest iPhone.

        • http://pharaohtechblog.blogspot.com/ Conan Kudo (???????)

          If I were to speculate, I’d say it is low, but possible. We have at least one event by Deutsche Telekom that we don’t know anything about, so it is possible. The event is later this month, too.

      • Littlesis1774

        Well if it doesn’t T-mobile going to be facing alot of customers leaving

  • http://www.facebook.com/james.ortiz0 James Ortiz

    i left as soon as they started the data throttling…..and so have many other people..and they will continue to leave unless tmobile becomes the great company they used to be

    • http://profiles.google.com/truckeemike mike s

      bye…

    • Mega G

      Sprint throttles too.  So don’t let the door hit you in the backside on the way out.

    • Anonymous

      The whole wireless industry gives you a choice of either overages or throttling.  Even on so called grandfathered unlimited plans.  Sprint is the slowest nationwide network in America, so good luck with that.

    • jarjon76

      I guess you won’t be having a cell phone then. Why announce you’re leaving? No one cares.

    • http://twitter.com/TuckerPeterson Tucker A. Peterson

      It’s either throttle or pay overages and for the price per month you are paying for the plans a little throttling isn’t a big deal.

      I do have a question though.  What are you people streaming that uses so much data and I assume this means you don’t have WiFi somewhere.  I have the 2GB plan and have yet to hit that mark and that is while streaming music, using personal and corporate email and other downloads.  I do have WiFi access though at home and sometimes at work which obviously helps alleviate some of the damage.

      • Tbyrne

        Exactly. What ARE these people doing to eat up 5GA in a month? Sounds suspicious to say the least.

        • Realcool2000

          Totally agree, I have the two GB on main line and 200mb on business line. I surf th e Web all the time and dont get close to going over.

          What the heck are these foolz doin to move 5gb….?

        • http://www.joshrobertnay.com Respawn

          A constant streaming of porn? Streaming music 24/7? All without
          Wi-Fi obviously.

          In other words, they probably need to get out more. Or get Wi-Fi. Anyone who uses more than 5GB on a mobile network obviously needs something.

        • Anonymous

          Yes because the caps is soooooooooo high

        • Diana

          I can easily someone commuting in a major city and streaming that much video or audio, especially if they’re on public transportation where the coverage is likely to be very high.  Especially if they’re a student and/or work from home.  And honestly, guys, there are people who do not have broadband available in their homes and/or who have such horrible copper lines that dial-up isn’t even worth pursuing.  

          One of the things AT&T was trying to blow smoke about getting broadband to rural areas where people don’t have other options available.  

      • Anonymous

        ridiculous question. Try using your smartphone as a smartphone without wifi and see for yourself. If you have unlimited data on cell phone you shouldn’t have to use wifi in the first place. otherwise if you are gonna just use wifi why even buy the data plan? its you people i don’t understand. the first time i had a high end android i hit the 5gb mark in 2 weeks, 3 times in a row downloading 3 HD apps, using the navigation feature , and streaming pandora. 

        not even half of the advertised features of the phone. Try adding in HD movies from netflix, video chat, youtube, graphic intensive websites. Re downloading apps, app updates… it all adds up fact of the matter is YOU AND MOST PEOPLE DON’T USE THEIR PHONES AS ADVERTISED OR AS FREQUENT excuse the all caps but its needed to be said and read.

    • Th3problem17

      the data throttling is old, and they are going to start that at sprint very soon as well so then what will be your excuse?

  • Tlovett1969

    Ooh, I have an idea. How about using some of the 3 BILLION DOLLARS they just got from AT&T for the merger/takeover falling through! Ya think?

    • http://profiles.google.com/truckeemike mike s

      I thought that too…

    • John

      DT isn’t using it in the US sadly. There using it in their European company.

      • Anonymous

        Why would they be talking to banks to get money for TMOUSA if they weren’t going to use it for TMOUSA? Did you even read the story? 

        • http://pharaohtechblog.blogspot.com/ Conan Kudo (???????)

          The DT Group wants to use the $3 billion to reduce their €40 billion debt by ~%5.8 for FY 2011. FY 2012 will probably see some other changes too. However, I don’t see debt going down until Telekom Deutschland stops deploying fiber internet and fixed-mobile convergence based on LTE for rural zones.

    • Anonymous

      Deutsche Telekom is in a bigger hole.. They are using the money to pay their debt, $18 billion.

  • Mhhvvn

    Awesome! Now I’m excired to see what’s next (:

  • http://twitter.com/crankmosh Doc Mosh

    postponed death throes… that’s all… 

  • Diana

    I’m not sure I understand how DT selling T-Mobile’s US towers is a good thing.

    Can someone who knows something other than “OMG WEN WE GET DA IPHONEY!?!?LAWL!1four” explain it to me in words an adult can understand?

    • http://pharaohtechblog.blogspot.com/ Conan Kudo (???????)

      In the United States, most cellular network operator companies do not own the infrastructure that runs their network. T-Mobile USA is the exception, not the rule. T-Mobile owns roughly 70-85% of the tower infrastructure that powers its network, with the remaining owned by individuals who’ve signed up for various programs like T-Mobile Towers, etc.

      By selling its infrastructure to a company like Midwest Tower Partners, LLC (who does business with all carriers by providing the towers for them to use), T-Mobile can raise a little over $2 billion.

      The problem that some have with T-Mobile selling its tower infrastructure is that T-Mobile will no longer be in full control of a majority of its network, so they can’t do upgrades and such cheaply and quickly. T-Mobile would have to deal with the tower company and all the red tape that entails.

      • Diana

        Well then we end up with the original problem of if DT sells the towers off, are they going to reinvest that $2billion USD into T-Mobile USA?  Somehow, I don’t think so.

        I’m beginning to believe DT is the albatross around T-Mo’s neck, not the other way around…

        • http://pharaohtechblog.blogspot.com/ Conan Kudo (???????)

          Well, unlike the US$3bn that DT got from the agreement, T-Mobile’s infrastructure is owned directly by T-Mobile USA, so the money would go to T-Mobile USA, not Deutsche Telekom.

    • Anonymous

      Just because we sell towers does not mean we sell the cell site. We still have our equipment on the tower we are just leasing the space from the new owner. the new owner is almost always a 3rd party tower company. It is more cost effective for us to operate this way. No indication of anything here. It is business as usual thrown into a story. This happens every day. We usually sell our towers within 30 days of building one.

      • Diana

        THANK YOU for a wonderful and comprehensive explanation!

  • 123

    Oh no. They are selling off assets, which probably means that they are not in it for the long run. 

    Looks like DT is about to suck tmo dry and sell it off later. 

    • http://tmonews.com David

      This is exactly what Sprint did and it’s not such an unusual move. If you took some time to do a little research, you’d know that!

    • Anonymous

      Almost every carrier sells off its towers. It does reduce operational costs and free up more capital to build more sites. We always try to build a site on a tower that already exists if possible. Selling off towers is not an indication of anything. 

    • http://pharaohtechblog.blogspot.com/ Conan Kudo (???????)

      Nah. Deutsche Telekom has been talking about selling off the tower infrastructure for two years now. It’s a money drain that they don’t see a good reason to have, especially since T-Mobile USA is pretty much the only network operator that actually owns a majority of the towers that power its network.

    • http://twitter.com/Matt_Harman76 Matthew Harman

      I work for t-mobile. They don’t own most of there towers. They rent space on towers owned by a third party (ie American Tower, Crown Castle)

  • BigMixxx

    Sprint did the same thing to raise captial a while back.  They only sold a bit of the tower infrastructure it had.  I believe it was some of the nextel footprint they were ridding themselves of.  They leased it back….2 billion is a lot of money.  They must be looking at a spinoff of ATT to buy that up…

    This, not an iPhone thing….this is to reduce some of T MO U.S.A. operational costs…..

    DT does not want to use ANY of their own cash…if they release bonds, they could be a good move for T MO US to stand on it’s own…

    • Anonymous

      I know this is off topic,but Big,just want to know if you still have your Lg G2x? LoL!

      • BigMixxx

        BWHAHAH!  Hell no.  Whined about it to T mobile every week until they sent me my Sensation.  finally, 
        After custom rom’ing it…. much better device…Whitehawx is the man when it comes to that phone…

        However, my first G2x, was suddenly wet; the only thing I can think happened is that the case, bought from T mobile hold’s moisture…so after pleading with Costco to return it…I did…and it all went downhill…Every replacement phone I got, was not better than the first G2x I had. Replaced 4 other G2x’s until I got a sensation…(and replaced 3 of those, till retentions directed me to go into the store and get a new one)
        Now get this…the G2x is a MUCH more powerful device, in EVERY way than the easily shown in hardware decoding a divx movie with MX video.  Even in software decoding, the sensation is killed by the g2x…Games, etc…same thing…Out of the box software, sucks off ron jeramy.  It is flat out horrible. between the kludgy update process (which died on me, leading to my second replacement) and lack of support (opened a case with LG on my Phone and the woman laughed when she said –’send it to us’–) LG should partner with folks or REALLY consider looking to the community for support of their devices by offering the sdk’s and API’s for their phones…I make it a point to ask the advanced support folks ‘what type of phone do they carry’…when the general census is an emphatic  ‘NO, I have a sensation/My touch 4g slide/Amaze/GSII’  all hope is lost for the G2x…So figured there would not be much of a future with LG and uber special devices..Now   LG (replaced Samsung ) is on my ‘I’d rather watch soft porn with my mom on cinemax, than buy a device with LG on it’ list….

  • http://www.facebook.com/people/James-Matthews/100000189923615 James Matthews

    Don’t care.  As soon my contract is up I’m out because they no longer carry the phones that I want.  It’s been a good 10+ years but sometimes change is good.

    • Tmo_employee

      the iphone huh

      • Yogi

        For me, it’s the Windows Phones: T-Mobile gets the Radar and AT&T gets the Titan. T-Mobile gets the Lumia 710 and, if the rumors are true, AT&T gets the Lumia 900. Personally, I wish that the cellular providers were more like home phone and Internet providers; just dumb pipes that provided the service and were device agnostic. Unfortunately, that is isn’t the current reality, so I need to look at going where the devices that I want are available.

        • Nomorecontract

          I just bought my first cell off Ebay because I was tired of waiting for what I wanted on T-Mobile. It won’t run anything more than Edge on T-Mobile. I won’t have to rely on T-Mobile for upgrades because it’s a Windows Phone.

          I think the model you describe has to come eventually. In fact there is a lot to be said for Telecoms/Datacoms/Wireless carrier companies becoming all one big ball of wax and leaving the hardware to float between them.

          Just give us 4 or more strong players that compete for our business.

        • Anonymous

          You could alwaysbuy the unlocked version. I hear it has tmobile bands too

        • Mopar6464

          .4 bigger screen and a slightly better camera.
          Not much different than my HD7 with a 4.3 screen and 5.0 camera.
          Same WM7.5 OS and 1.5 processor.

        • Anonymous

          HD7 has 1.0Ghz processor not 1.5. Just an FYI.

        • Mopar6464

          Correct.
          I was just trying to point out that there was’nt that big of  difference between the two to get his panties in a uproar about.
          With the super smooth OS that WM7.5 is , you won’t notice  the .5 difference in power.

        • Anonymous

          id rather an iphone than a windows phone. Its not tough to be a super smooth OS when all you have is tiles to display on color background. I mean come on now. 

        • Littlesis1774

          I hate window phones

    • TylerDerk

      God please dont say the iphone,,,silly rabbit 

      • Giraffe

        What else is out there that T-Mobile doesn’t have an equivalent to?  Maybe a high-end Windows Phone…

    • Fan-of-Tmobile

      Goodbye and Goodbye.

    • Tbyrne

      Yes! I’m happy for this particular change.

    • Realcool2000

      Its funny how people that supposedly leave tmo, have to announce it to the forum. If I was gonna gonna do something as trivial as that I would just do it and be done. People always want to be dramatic.

      Now if he went to say…. Join a forum where he just joined that that carrier then say hey I joined so and so carrier, then that makes sense.

  • http://twitter.com/TuckerPeterson Tucker A. Peterson

    Didn’t (or Isn’t) AT&T giving DT a couple billion in cash plus the spectrum from the failed deal?  Do they need more or are they just being stupid with the money AT&T is giving them? 

    • Plan_C

      Right now couldn’t be a better time for getting cheap money….JUST AS LONG as they can build the business to service the debt.

      I would much rather see them merging with one or two of the smaller players and Dish than end up highly leveraged AND the “player in the middle” that BOTH ends of the business love to “bite”.   The AT&T & Verizons on one end and the Metros & Virgins on the other.

      • Anonymous

        DT is a large company

        AT&T has $73b in debt they can’t service, had to issue bonds a few ago to get money and analysts are OK with giving them more loans. So…

    • Mark

      I think they’ve already said that they’re planning for that money to reduce their existing corporate debt, not to be plowed back into TMoUSA.  I could be wrong, though.

  • Wilma Flintstone

    Please get some Tizen devices Tmo USA that’s what I’m waiting on

    • Chatter

      With the Android bandwagon that TMo has hitched itself to, you may be waiting long Wilma.

      • Tmobile4life

        bandwagon? tmobile was the first to introduce android! just sayin

        • Chatter

          You are correct. I was implying that TMo has so far focussed on bring solid android devices and “meh” other devices. Tizen may not be on their radar.

        • Diana

          Wouldn’t an end user be able to root their phone and load Tizen if they wanted to?

        • http://www.facebook.com/andrewtsingleton Andrew Singleton

          what’s tizen?

  • http://twitter.com/SParKlngCyaNide SparklingCyanide

    Well I wish they’d figure out a way to create an LTE network by the end of the year.  As much as I love HSPA+(and I really do), that’s not going to carry us into the future or be attractive to potential buyers in the future without it.  Either way whether they sell or not, they need LTE.

    • Nick

      I don’t see what the big deal is about LTE.  I just want a 4g network that will allow me to download apps quickly, stream music on pandora and google music, and watch videos on youtube.  I don’t care if that network is called LTE or HSPA+.  And now that Tmobile has finally rolled out 4g where I live, I’m completely happy with it.  Just give me a solid 3-5 mbps up and 2-3 down and I’m good.  Anything else is nice but unnecessary as far as I’m concerned.

      • Anonymous

        but give me a network that gives me that everywhere, not just in major cities!

        • Doneanddone

          there is not 1 carrier that has full network coverage everywhere..its easier to build from a downtown city because of the height of the buildings

    • Kerry

      HSPA+ is great.  It doesn’t have the ‘Buzz’ that LTE has but its very functional and could carry T-Mobile for 1-2 years while the roll out their new version of 4G.  But HSPA+ needs to be everywhere T-Mobile currently is, and coverage needs to expand.  I’m not sure how it does that, but that’s what I see as T-Mobile’s challenge in the coming years.

      Having low prices is great… but when you have to sacrifice coverage for cost some people can’t (or won’t) afford that trade off.

    • Anonymous

      To hell with LTE that vampire network no t-mobile say NO! LTE SUCKS! 

  • wsj

    Selling towers and lease back, sounds like to standard bad answer from McKinzie & Co “management consultants” how to raise “value.”

    Talking to Bankers sound like a spin-off to me.

  • Anonymous

    I think T-mobile needs to focus on getting the IPHONE, its not a big deal, but being a major carrier its a must.. its like selling Samsung and Nokia.  At this point it will help, they need to work on the towers they have already and fix it so we dont have so many dropped calls, get the 4g going in all areas I have the LG G2x and only get edge most places due to dropped calls on 4G.  Also they need to stop transfereing all the customer care people to another contry, The customer care aspect used to be great before they changed it… Now even if you are an employee you hate to call cause you know you will get someone that doesn’t speak english… Its a shame I tell yeah. 

    • JustSaying

      since when do phone calls work over the 4G network??… you don’t need DATA to make a phone call right??

      • Anonymous

        Voice travels over HSPA+ too.  Unlike LTE in it’s current form.

    • Anonymous

      The uniqueness to the iPhone is dead its just a renamed android. whose this we in regards to dropped calls? i haven’t received one in years. They do need to step up their customer service though it seems to be when the merger happened they got rid of the good people to give customer service.

  • P Bulger1

    With the large amount of cash from the att deal, a selling of towers, and floating bonds, it sounds like they are getting ready to buy someone.  Perhaps Sprint/Clearwire for LTE?  

    • Keithvstevens

      Will T-Mobile rollout an LTE deployment strategy in the near future:In my personal opinion, the LTE topic right now is in the U.S. completely overhyped. If you look at it from a consumer point of view, do you think there’s going to be a difference between if you’re on 4G or LTE? The point I’m simply making is that from a consumer point of view, LTE is irrelevant at this point in time. It’s not something that’s immediate in its need, and that’s why we’re a little bit relaxed on the LTE front. But we’ll have more to say about LTE when the time has arrived for it. More to come. This is from the C.E.O. himself. So them selling off there towers has nothing to do with raising money for LTE…. They are scraping assets to pour money into DT. 

  • Anonymous

    I hope this works out or some other plan is in the books also.

    Oh and that store pictured is mighty nice, I wish mine were like that

    • P Bulger1

      as long as they keep Carly

      • http://www.facebook.com/andrewtsingleton Andrew Singleton

        ew is that her name?

  • MIS, IT

    TMobile is so loser! Network simply sucks sorry! ok just very poor.  HSPA?  give me a break read your industry reports people… change your business model or go down , bonds, layoffs, lies, force feeding via marketing..  reminds me of Nazi Germany,, D.O.J put a stop to the AT&T chop shop for a reason… no value! There’s more smoke and mirrors than a KISS concert… replace the girl on the commercial with a canival act and there you have the dynamics of a TMobile network…       

    • http://www.joshrobertnay.com Respawn

       I’d rather replace your comment with something less trollish and more useful. :)

    • Anonymous

      Stupidity that is all I have to say.T-Mobile has no value? LOL please go jump off a cliff for posting such ignorance.

    • Anonymous

      It’s called English…USE IT!

  • AndroidLuvr

    I’m okay with the sucky service because they are so cheap.  I mean in one spot you might super fast HSPA+ speeds then move 2 feet and you are back to EDGE.  The network is very inconsistent.  

    Hopefully by the end of this year they suck less.  Many Americans live outside of metro areas in the burbs and T-Mobile is too weak in many of these areas.  Need more capacity (fiber backhaul) and more strategically placed sites with MIMO to improve indoor and hard to reach areas with their high frequency network. 

    I live in a 42 Mbps area and can’t even crack 1 Mbps down.  

    • Jonathan

      i live in a place like you.. But im hitting 32mbps at most

  • Tukwilawa

    lmao thats the store i work for o.O

  • Derail Doax

    Sprint doesn’t throttle. But their 3G tops out at 1.0mbps and their WiMAX pulls a 6mbps at best. So essentially it’s throttling due to inferior technology. Lol. I know because my EVO 4G consistently speed tests slower than my 7.2Mbps radio equipped HD7.

    • http://www.facebook.com/andrewtsingleton Andrew Singleton

      they do, but only the top 1% of users. i’m not sure what the threshold is.

  • Derail Doax

    I hit my 5GB cap in one week streaming HD YouTube phone reviews, and watching Netflix. Don’t assume because you don’t use your phone for streaming media that it’s hard to hit that cap.

    • Anonymous

      I have hit it in one night using it as a hotspot for my laptop to stream netflix on my old unlimited tmo plan! I watched probably 3 movies, and the next morning checked my usage and I was at 12GB. Lol. By the end of the bill cycle I was at 20GB even with the throttling.

    • Jonathan

      I do to.. The bad thing is that they dont throttle your speeds at 2G speeds they lower u at Dial up… They need to work on that

    • http://www.facebook.com/andrewtsingleton Andrew Singleton

      holy hell how many reviews did you watch!?!? 

  • Guest

    I think T-Mobile + Dish Network would be a good match. Dish could give T-Mobile the LTE they need. Both are value companies.

    • Anonymous

      Think of the latency. The signal needs to travel up into space 22000 miles, then back down to the gateway on earth 22000 miles and reverse the process getting the info to you. No thank you to that partnership.

  • steven

    being behind on the 3G tidal wave gave TMO a leg up in the future because they were able to roll HSPA+ with the correct stuff (i don’t know the technical word) in place.  perhaps, being behind on the LTE tidal wave and letting other carriers work out the kinks, will work in TMO’s favor as well?  

    • Anonymous

      That’s what I’ve been thinking too, looking at all the trouble verizon has been having, though I must say they have responded rather quickly.

      • Anonymous

        Verizon’s trouble has more to do with LTE not being compatible with CDMA, the are using eHRPD which is not the most stable solution. HSPA/UMTS wont suffer from this issue, IE check AT&T LTE stability. T-Mobile would be the best yet transition as it has all the hardware (IMS) for VoLTE in place, something none of the other big 3 can say.

  • http://www.facebook.com/andrewtsingleton Andrew Singleton

    what do you people use on your phones that you need speeds faster than like 5 mbps? my downloads finish before they even start and i’m not even on the 42mbps network. i dont see why you need more speed. 

  • guest

    I agree Mark – T-Mobile & Google would be really cool!

  • Anonymous

    How will selling towers to increase capital be good for TMO’s long-term bottom line? That seems like a rather poor long-term plan….

  • Barry

    It’s not because Sprint doesn’t WANT to throttle. They simply don’t have the mechanism in place, nor the brain trust needed to facilitate this type of control.