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T-Mobile Parent Still Wants To Offload the Uncarrier

Jan 19, 2015, 8:45 AM by Eric M. Zeman

Deutsche Telekom, majority owner of T-Mobile, believes the Uncarrier's best chances of success are to merge with or be acquired by another large carrier. Deutsche Telekom CEO Tim Hoettges, speaking to Re/code, said T-Mobile lacks the scale enjoyed by rivals AT&T and Verizon Wireless. Without that scale, it will be hard for T-Mobile to compete in the long run. "I was intrigued by the idea of having a combination with Sprint and being the 'super-maverick' in the market," said Hoettges, "I hope that the political environment will change at one point in time." Sprint's parent, SoftBank, abandoned the idea of acquiring T-Mobile last year after regulators said the deal would face major hurdles in scoring approval. While Hoettges praised T-Mobile CEO John Legere for enacting change and turning the company around with aggressive promotions, he said T-Mobile cannot hold its current course indefinitely. "The question is always the economics in the long term," said Hoettges. "You have to earn your money back at one point in time."

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gloopey1

Jan 19, 2015, 4:52 PM

And then there were three

I still believe Sprint and TMobile will eventually merge, even though they failed previously. In spite of both companies aggressive pricing, Verizon and AT&T have succeeded in convincing the public that everyone needs native-network coverage everywhere they go.

B-Sides

Verizon and AT&T have convinced people that they have better networks, because they do!

If both T-Mobile and Sprint had better networks they wouldn't feel the need to fight a price war. Its pretty simple, T-Mobile and Sprint want you to believe the...
(continues)

...

B-Sides

Jan 19, 2015, 6:19 PM

In other words...

He is basically saying that they can't continue to fight a price war. They are buying their customers now and this is a good short term solution but hand cuffs their potential for network enhancements which in turn causes customers to leave. Its simply a short term solution that is destined for failure.

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