Feeds

Deutsche Telekom acquires US mobile networks

$2.5bn to former partner Cingular

  • alert
  • submit to reddit

Build a business case: developing custom apps

Deutsche Telekom plans to splash out $2.5bn (£1.4bn) to acquire mobile phone networks in California and Nevada. The networks in question were jointly own by T-Mobile USA and the US mobile communications company, Cingular Wireless, following a deal back in 2001.

Now, that joint venture is to be dissolved and T-Mobile USA is to acquire the GSM networks from Cingular. As well becoming the sole owner of these GSM networks, T-Mobile USA will also regain full ownership of a mobile network in New York. Over the past two years T-Mobile USA has added 1.7m new punters in California and Nevada - and it reckons that there is plenty of scope for further growth.

Chairman of the Board of Management of T-Mobile parent Deutsche Telekom , Kai-Uwe Ricke, said: "We are confident that this investment will accelerate the long-term profitable growth of our US mobile operations by strengthening our market position in the important and attractive markets of California and Nevada."

As a result of the proposed deal, Deutsche Telekom reckons that it will have more than 16m punters in the US by the end of the year. It's also upped long-term estimates for customer growth guessing that numbers in the US will increase to between 30 and 35 million, from current market estimates of around 25 million over the next ten years.

T-Mobile USA's plan to acquire the network - which still needs regulatory approval - comes as Cingular nears its $40bn (£22bn) acquisition of AT&T Wireless in the USA. ®

Related stories

Dust settles on AT&T Wireless battle
Vodafone loses AT&T Wireless battle
Cingular eyeing AT&T Wireless again

Secure remote control for conventional and virtual desktops

More from The Register

next story
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Don't call it throttling: Ericsson 'priority' tech gives users their own slice of spectrum
Actually it's a nifty trick - at least you'll pay for what you get
Three floats Jolla in Hong Kong: Says Sailfish is '3rd option'
Network throws hat into ring with Linux-powered handsets
Fifteen zero days found in hacker router comp romp
Four routers rooted in SOHOpelessly Broken challenge
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
US TV stations bowl sueball directly at FCC's spectrum mega-sale
Broadcasters upset about coverage and cost as they shift up and down the dials
Trans-Pacific: Google spaffs cash on FAST undersea packet-flinging
One of 6 backers for new 60 Tbps cable to hook US to Japan
Tech city types developing 'Google Glass for the blind' app
An app and service where other people 'see' for you
Canadian ISP Shaw falls over with 'routing' sickness
How sure are you of cloud computing now?
UK mobile coverage is BETTER than EVER, networks tell Ofcom
Regulator swallows this line and parrots it back out at us. What are they playing at?
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.