Feeds

Deutsche Telekom acquires US mobile networks

$2.5bn to former partner Cingular

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

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

Providing a secure and efficient Helpdesk

More from The Register

next story
Sea-Me-We 5 construction starts
New sub cable to go live 2016
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
BT claims almost-gigabit connections over COPPER WIRE
Just need to bring the fibre box within 19m ...
EE coughs to BROKEN data usage metrics BLUNDER that short-changes customers
Carrier apologises for 'inflated' measurements cockup
Comcast: Help, help, FCC. Netflix and pals are EXTORTIONISTS
The others guys are being mean so therefore ... monopoly all good, yeah?
Surprise: if you work from home you need the Internet
Buffer-rage sends Aussies out to experience road rage
EE buys 58 Phones 4u stores for £2.5m after picking over carcass
Operator says it will safeguard 359 jobs, plans lick of paint
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.