Feeds

Softbank gobbles T-Mobile ... 1 year after AT&T tried it on – report

Only just merged with Sprint. Welcome to the incestuous world of wireless

Boost IT visibility and business value

Network integration seems to be the order of the day with mergers rumoured between T-Mobile US Inc and mega US wireless carrier Sprint, and – across the seas – Orange France and Bouygues Telecom.

Reuters is reporting that T-Mobile US owner Deutsche Telekom has agreed a deal to sell the network to Sprint’s owner, Softbank Corp of Japan. Deutsche Telekom acquired its share in VoiceStream Wireless – which later became T-Mobile US – in a 2002 deal which valued the company at $55bn.

The argument behind the sale is that Sprint and T-Mobile are struggling to compete with the duopoly of AT&T and Verizon. One stronger third player would be better than two weaker rivals.

The Japanese news agency Kyodo is reporting that the deal has been done, pending regulatory approval, and that Softbank and Sprint Chairman Masayoshi Son approached Deutsche Telekom, which has been looking to sell its American network for a while.

Sprint had previously opposed the 2011 deal for AT&T to buy T-Mobile, arguing that it was anti-competitive and the US justice department vetoed that plan. Son recently praised T-Mobile US chairman John Legere at the Re/code conference where Son talked about how T-Mobile had approached pricing and argued that a merger of his company and T-Mobile would improve US broadband speeds.

Reuters claims that under a deal between Deutsche Telekom and Softbank, the German company would retain a minority stake in the merged company. No details of the deal have been made public but Deutsche Telekom has a 76 per cent shareholding in T-Mobile US, which has a market value of $27.6bn. The failed AT&T bid valued T-Mobile at $39bn. The company is under financial pressure to invest in its domestic market and other European operations, particularly those in Eastern Europe.

Similar consolidation in France has been hinted at by Orange France CEO Stephane Richard, saying that the cutting of the number of operators there from four to three was a matter of urgency. He is reported as saying: “If something is to happen, it will happen in the coming weeks.”

France sees very high rates of consumer churn, fuelled by low-price deals from the ISP Iliad, which runs the Free Mobile service and which is also rumoured to be looking to buy Bouygues. ®

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
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
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?
prev story

Whitepapers

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.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
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.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.