Feeds

T-Mobile penetrates Virgin Islands

US cellco yields to the mighty Euro

The Power of One Infographic

T-Mobile USA has gobbled up SunCom Wireless, looking to expand the country's fourth-leading cell phone network into Puerto Rico, the Virgin Islands, and the heart of the Southeastern United States. You know, the former confederacy.

T-Mobile, a wholly-owned subsidiary of Deutsche Telekom, will pay $1.6bn in cash for the regional wireless carrier and assume $800m in company debt.

Spanning North Carolina, South Carolina, Tennessee, and Georgia as well as parts of the Caribbean, SunCom's GSM/GPRS/EDGE network has provided roaming service for T-Mobile users since 2004, but T-Mobile now wants to merge the network with its own.

“The strategic fit of the SunCom operations will make this a near-perfect acquisition," said Robert Dotson, T-Mobile president and chief executive officer, as you'd expect him to say. "It will round out our domestic footprint, allowing us to serve 98 of the top 100 markets, and will significantly benefit our financial position by reducing roaming expense."

But our favorite quote comes from René Obermann, chairman of the Board of Management at Deutsche Telekom: "With the acquisition of SunCom, we will continue to implement our strategy to 'grow abroad with mobile', which is part of our overall group strategy," he said. "At the same time we can realize significant synergies on the cost side and improve our market presence. As a result, this acquisition will fit very well with our strategy to grow abroad with mobile primarily within our current footprint within the context of market consolidation."

Unfortunately, we can't provide a translation. We're even not sure if he's using marketing speak or his native German. This El Reg hack is fluent in neither.

In acquiring SunCom, T-Mobile expects to expand its wireless coverage from 244 million PoPs to 259 million, reach about 1.1 million more customers, and save about $1bn as it slices those roaming and operational costs.

Despite the acquisition, the company is still the country's fourth- largest wireless provider, behind AT&T, Verizon Wireless and Sprint Nextel. T-Mobile is set to reach 28 million customers, but AT&T reaches 61 million. ®

The Essential Guide to IT Transformation

More from The Register

next story
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
Google Nest, ARM, Samsung pull out Thread to strangle ZigBee
But there's a flaw in Google's IP-based IoT system
Orange spent weekend spamming customers with TXTs
Zero, not infinity, is the Magic Number customers want
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
NBN Co execs: No FTTN product until 2015
Faster? Not yet. Cheaper? No data
Oh girl, you jus' didn't: Level 3 slaps Verizon in Netflix throttle blowup
Just hook us up to more 10Gbps ports, backbone biz yells in tit-for-tat spat
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.