Deutsche Telekom’s subsidiary T-Mobile US and Sprint stop merger talks

Following this year’s spectrum auction in the US, T-Mobile US and Sprint Corp., together with their majority shareholders Deutsche Telekom AG and Softbank Corp., talked about a potential combination of their businesses. An agreement about the general framework of such a merger could not be reached. Therefore, the talks were now put to an end.

 T-Mobile US, of which Deutsche Telekom holds 64 percent of the shares, plans to continue its successful growth strategy.

Tim Höttges, CEO of Deutsche Telekom: „We have always said, that – given suitable conditions – a merger of T-Mobile US with another company could offer additional benefits to customers and the perspective of an increase in value to shareholders. These conditions could not be achieved here. In recent years, T-Mobile US with its high-performing management team has established itself as an innovative provider of mobile services, offering the best network quality. This way, the company has generated remarkable growth. As Deutsche Telekom, we supported our American subsidiary to invest more than 40 billion Dollar over the last years, thus building a strong basis for growth in the upcoming years.”

T-Mobile operates the fastest LTE network in the US covering over 316 million Americans. The various Un-carrier moves in recent years, such as „BingeOn“ and „Netflix-on-us”, are the basis for T-Mobile’s great success in the American mobile market.

For 18 quarters in a row, T-Mobile has gained more than one million new customers net per quarter. Also, the company has seen the strongest revenue growth of all national mobile operators for several quarters. In Q3 2017 revenue grew by 7,7 percent to 10 billion Dollar (US-Gaap). The forecast for the operational result was raised for the second time this year to now 10,8 to 11,0 billion Dollar (US-Gaap) for the financial year 2017.

With the new 600 MHz frequencies and the A-Block spectrum acquired earlier, the company continues to expand its network, boosting capacity and quality again clearly. The new lowband spectrum allows a profitable network expansion even to rural parts of the country. The distribution network is expanding, too: in 2017, some 3000 new shops will be opened. The company plans to profit from these investments by future growth.

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