Germany′s T-Mobile Wins Licenses in the United States | Business| Economy and finance news from a German perspective | DW | 20.09.2006
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Germany's T-Mobile Wins Licenses in the United States

German telecommunications giant T-Mobile is geared to expand its presence on the US market. It won the most licenses in an FCC auction of advanced wireless services.

T-Mobile wants a larger piece of the US mobile phone market

T-Mobile wants a larger piece of the US mobile phone market

T-Mobile bid some $4.2 billion (3.3 billion euros) for 120 licenses, according to the Federal Communications Commission (FCC). These include regional rights for large parts of the United States, as well as individual licenses for major cities, such as New York and Chicago.

Thomas Friedrich, an analyst with HVB bank, said the amount bid was in line with expectations.

"We think that it is positive for Deutsche Telekom that the auction has ended," Friedrich said in a research note quoted by Reuters news agency. "The end of the auction, in our view, reduced uncertainty about the cash flow of the German incumbent."

T-Mobile wants to move up from fourth place

The FCC's four-week auction of Advanced Wireless Service (AWS) spectrum licenses brought total revenue of $13.9 billion.

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Deutsche Telekom wants to shine on the US market

The AWS licenses can be used to provide a wide range of wireless services and technologies, including voice, data, video and other wireless broadband services offered over third generation (3G) mobile networks.

T-Mobile can now significantly expand its business in the United States. Currently, the Deutsche Telekom subsidiary is number four on the US market.

Telekom keeping quiet on details

Like the largest provider, Cingular Wireless, T-Mobile uses the European-developed GSM standard. It is being upgraded to 3G network technology.

T-Mobile and Deutsche Telekom declined to comment on the move.

Under FCC rules of the auction, bidders are not allowed to make public statements before the end of a so-called quiet period of fixed duration. It is expected to last approximately two weeks.

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