Report: Telekom Mulls Sale of T-Mobile USA | Business| Economy and finance news from a German perspective | DW | 04.07.2005
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Report: Telekom Mulls Sale of T-Mobile USA

Deutsche Telekom, Europe's biggest telecommunications group, is considering whether to sell its subsidiary T-Mobile USA to avoid a costly network restructuring, the Wall Street Journal reported Sunday. A sale could potentially reap some $30 billion (36 billion euros) for the company. Restructuring of the T-Mobile network could cost the firm up to $10 billion in the next few years if it is to remain in the running against US competitors, according to sources quoted by the Wall Street Journal. T-Mobile USA has around 10 percent of the US market, outdistanced by rivals such as Verizon Wireless and Cingular Wireless. Deutsche Telekom has told investors it will make a decision by December. The sale would allow the company to make acquisitions in Europe. But the company's board is split on the best way to go, with some directors even opposed to a sale, arguing that European acquisitions have become too expensive. Also no buyer is yet forthcoming. British cellular giant Vodafone is not interested, a Vodafone spokesman said, pointing out the company's commitment to Verizon Wireless in which it holds a 45 percent stake, the newspaper added.

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