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Now This Makes More Sense


Now here is a deal that makes significantly more sense for Deutsche Telekom: T-mobile and Clearwire sitting in a tree.  Just a few weeks after rumors surfaced again of another Deutsche Telekom/Sprint acquisition the rumor mill turns to unnamed sources who claim talks are underway between the companies. Why does this make more sense for T-mobile you might ask? Clearwire allows T-mobile to make giant leaps forward in the 4G game where  they are already playing catch up. Clearwire, needing additional capital to continue building out its network would clearly find cash flow from any type of transaction. While Clearwire is already in bed with Sprint on the whole Wimax 4G solutions, Clearwire has stated they are open to changing directions.

On another note, concerning the above rumor, T-mobile is said to be considering a partnership with MetroPCS who also have available spectrum for a 4G solution. MetroPCS has committed to LTE, Deutsche Telekom has committed to LTE, so what will T-mobile USA do? Was the Clearwire statement regarding a change in 4g direction a pre-cursor to merger movement or just a blanket statement that they are keeping their options open? Time will tell if this rumor has more muscle than the previous 63 Sprint buyout rumors, but one thing is for sure, T-mobile needs to turn things around and fast.


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