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Saturday, December 24, 2011

ATandT, Deutsche Telekom Could Still Salvage T-Mobile Deal

NEWS ANALYSIS: A merger between Deutsche Telekom and AT&T would save T-Mobile so it could get the spectrum it needs, as well as focus on prepay and reseller partnerships.

With the AT&T acquisition of T-Mobile now dead, the future of T-Mobile is uncertain. The wireless carrier doesn’t have enough wireless spectrum to compete in the 4G market, and the company lacks what every other major carrier now has–the iPhone. 
T-Mobile also doesn’t have anywhere near the large number of subscribers as Sprint, Verizon Wireless and AT&T Mobility. The company looks like a small country bride who was left at the alter by the big, rich kid.
However, there’s one scenario left that could both save T-Mobile and allow AT&T to become a truly international telecommunications company. This scenario would have AT&T do a “reverse merger” with Deutsche Telekom with the combined companies called AT&T. It would be a reverse merger since Deutsche Telekom merges with AT&T but then become AT&T. That combined company would then own T-Mobile. 

 

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