For those unfamiliar, Deutsche Telekom is the parent company of US carrier T-Mobile. As you might have heard, there have also been talks that T-Mobile could be bought up by Sprint and in the past we have seen how other carriers, such as AT&T, have attempted to purchase T-Mobile as well. All of this seems to indicate that Deutsche Telekom wants to exit the US market as they believe that by being fourth place, behind AT&T, Verizon, and Sprint, it would limited their long-term profitability.
Instead if they were to sell off T-Mobile USA to another carrier or a company, they could then use those resources and focus their efforts over in Germany to upgrade their networks as well as to expand into Eastern Europe. That being said, it seems that despite the advantages of exiting the US market, Deutsche Telekom is reportedly in no rush to do so at the moment as they are wary of potential blocks by regulators that they had initially experienced when AT&T attempted to purchase T-Mobile.
There is also the issue of the FCC who seems to insist on having four major carriers as opposed to three, which we guess is understandable as they would not want to create an oligopoly. In any case we guess we will just have to wait this one out, but what do you guys think of the chances of the Sprint/T-Mobile deal going through, if it were to be officially announced?
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