Not a week goes by that we don't
hear of investor pressure on Deutsche Telekom to strengthen its financials and
offload underperforming units -- T-Mobile USA included -- and the American outpost is back in the spotlight this evening coming off a report out of
The Wall Street Journal that a spinoff might indeed be in the works. According to our favorite "people familiar with the matter," DT has reached out to a few banks with the goal of raising enough capital for T-Mobile through an IPO that it'd be able to continue to fund its network build-out, something that's going to become increasingly critical as it fends off 7.2Mbps HSPA and 4G competition from all of its national competitors. There are a few scenarios allegedly being discussed, ranging from a full-on excision of T-Mobile from its corporate parent to a merger with another US wireless firm -- but the plan gaining most traction internally is said to involve selling around 20 percent of the carrier to investors while hanging onto the rest, a situation that would get the underperforming unit's financials off DT's books. Ultimately, whatever comes of this probably won't happen for a few months while the options get mulled, but considering what
went down in the UK, this certainly seems plausible.
posted February 4th 2010 8:54PM
just a matter of time between them and sprint merging like they been talking about seems like forever.
@danhawk911
Yeah let's cover all the bases
GSM - check
CDMA - check
iDen - check
compatibility - ???
Although a Motorola Droid with WiMax, HSPA, and iDen PTT on T-Mobile would be wicked!
@danhawk911 It would be horrible if Sprint and T-Mobile merged!!! But the thought of all that 1900Mhz Spectrum!! On second thought maybe they should merge. Get rid of that Nextel garbage and use that 800Mhz Spectrum for something good!!
@danhawk911
However, If google BUYS tmobile (g-mobile?), that can only mean one thing.. FREE-mobile!!!
@Action Eugene
Yes, because clearly everything Google does is free, like AdWords and the Nexus One. Oh, wait...
Seriously though, t-mobile is the "smallest" of the Big 4, both in terms of physical coverage and subscribers. But that's still millions of paying subscribers. Nation's largest pre-paid carrier???
@Palomino T-Mo is third largest, Sprint is smaller than T-Mo
@z0phi3l
That is incorrect. Sprint has approximately 48 million subscribers while T-Mobile has about 33 millions:
http://en.wikipedia.org/wiki/List_of_mobile_network_operators_of_the_Americas#United_States
Remember that T-Mobile is the only one of the "Big Four" that has never merged with another major carrier.
Here is your chance Google, buy T-Mobil and turn it in to the Google network!
@theinternetstom GREAT
@theinternetstom And then record everyones phone calls and sell the contents to advertisers. On second thought.....
@theinternetstom
But that would make the concept of robots taking over the world become too close to reality... Not to mention that means the Nexus One would never go to Verizon.
@theinternetstom
http://www.hulu.com/watch/114919/supernews-the-google-toilet#x-4,vclip,3,0
@engadgetcomexcludeengadget Bring on G-mobil!
@theinternetstom
what about apple? it fits in perfectly for them; proprietary network for the US and they can charge whatever prices they want for their next i-something!
@theinternetstom Wow...that works out almost too perfectly...like it's destiny or something. Seriously, Google owning a mobile company would be awesome because they have the muscle now to influence handset design plus they also have the capital to build out T-Mobile's existing network to give it a greater footprint and really create the new "best" network.
@theinternetstom - or "The "G" for short. Just imagine what G-mobile would look like:
- 4G deployed quick fast
- WiFi augmented
- Femto Cell augmented
- Cell towers powered by solar powar
- Or those vertical wind turbines
Now we have "the G-power" electric company since those turbine/solar equipped towers would not only pay for themselves but reduce google's carbon froot print and produce much more energy than they use. Shall I keep going? I got at least 7 to 10 more. E boogie you listening?
@Frankenstein Black - Oh, and I'm saving the good stuff for when I get on the G-pay roll, just sayin ;^p...
@theinternetstom
Doing that would kill Android.
Why would Verizon, Sprint, or Att continue to support essentially a T-Mobile OS? Such a deal would be a huge victory for RIM, Palm and WinMo.
@Frankenstein Black Im digin it! bring on gLife!
@darth vader i'm waiting for apple to buy ATT
@Frankenstein Black Wow, don't forget the free puppies, unicorns and end to world hunger and aids in Africa!! Seriously, what a dream dude. I agree that Google has the money to do that, but so does Apple and Microsoft, each with their own proprietary mobile OS's, Internet ad networks, and content distribution services. They are equally likely as Google at this point (which is to say NOT).
Also, liberal much "something, something, something, green power turbines, carbon foot print..." At the end of the day, Google is just another company, not the Messiah- they have real world business costs too.
@Edobe
Funny clip! Thanks.
@darth vader
Apple WITH it's own carrier?? iPwn! I'd have no money left...
@darth vader
Keep crApple out of it, they would triple everyone's rate and remove as many services as possible. Voice mail? "You don't need that". Call forwarding? "We'll decide where your calls go, sit down and be quiet."
Yeah, I've had enough of them for 5 lifetimes.
It probably would be an Excellent idea for Google to just buy T-Mobile and rename it Google Mobility. That would be the best Google will have an os and a network and with Google's money "Google Mobility's" network could be built out much faster and really become a giant!
@domiiniiano I spose it'd give google the towers to bring free wifi to many parts of the country too. Gotta think that google is certainly looking into it, though I'd hope that Nokia would too, but that's just cause I'd like to see Nokia have a network they could build up with instead of fighting with (see AT&T)
@mv ooh towers for free wifi, I hope some cash came along with that deal but free access would sweeten the pot.
@mv Without electing Rainbow Stalin for a Utopian communist scenario, capitalist politics and personal gain stand in the way I think.
Nothing is free is good, and nothing good is free. Including the massive data pipes each tower would use to provide your WiFi if that happened. If you really want cheaper/free data you need to put pressure on the backhaul providers, or lay alternate lines not owned by the local incumbents. There is more to throwing up towers and hitting switches friends, and by more I mean the [Native American Tribal/Sovereign U.S. Nations]-> National->State->County->City->District government policies, laws & regulations that get involved at each level every time. Even things you pay for (like the spectrum from the AWS auctions) isn't yours until the previous government users get off the frequencies, and they don't really HAVE to do it by any given time.
Also- you have to pay the landowners to lease the property where a tower is located. ABI Research forecast North America cell site lease revenue of $3.77 billion USD in 2009, and Google's net income for 2009 was $6.52 billion USD in 2009.
Without Rainbow Stalin, I'm pretty sure the shareholders at Google wouldn't be too excited to have Google give out over 50% of the annual profits so everyone could have free WiFi, but that's just me.
Hopefully this doesn't mean that 4 carriers -> 3 carriers... The US needs more mobile competition, not less.
@Rick James
Agree. I don't have T-Mo, but I appreciate their existence for exerting some competitive pressure on the other carriers.
@Le Big Mac
I'm not a T-Mobile customer either, but I dont think its a good thing if Verizon and ATT are the only two left standing...
@Rick James
sprint called said don't forget about me
@Rick James The problem is, their network is too small to matter. AT&T and Verizon aren't going no-contract because of T-Mo.
G-Mobile would be cool, although it would make the most sense for Apple, since then they wouldn't have to deal with a carrier. Apple Mobile anyone? It would also be great for the urban hipsters that they so often market the iPhone to.
AT&T would probably buy it though, since the networks are sort of compatible with each other.
Sprint would be a disaster, CDMA and iDen is bad enough, having a network that spans all of the available technologies on the market would be a complete disaster.
@DefPoet
My original post included sprint--however they are they are a distant third compared to ATT and Verizon. The latter two are clearly the two heavy weights.
@Rick James
Competition is healthy in any business environment but so is making money. A company that does make money will parish or be consumed by another. AT&T was once forced to break apart. At&T purchased BellSouth a few years ago. Sooner or later there'll be just one or two mobile telecoms.
I remember Deutsche Telecom demanding Engadget Mobile for using the color magenta.
http://www.engadget.com/2008/03/31/deutsche-telekom-t-mobile-demands-engadget-mobile-discontinue/
And one of the best comments I have ever read on the article:
"What a bunch of Deutsche bags."
Ohhhh I see the comments are back on...
@Hydra
nope- just your imagination;)
@Hydra No, you just have to hit the Comments off link up there ;)
Google needs to buy it.
TMobile could teach them a bit about customer support...
@TFNN I'm honestly hoping that Apple would buy it instead.
Who knows... Maybe an Apple owned phone network would actually be proactive enough to build up adequate network infrastructure to support whatever shiny new iThingie they develop BEFORE they ship to their users. It would certainly be a better approach than relying on at&t, and having them drop the ball over and over again.
Seriously, Apple's has to be sick of their brand and reputation in the US being hurt by their choice of network providers... and they certainly have the cash-flow available to finance a major purchase like this.
@leonbev hellyeah! I'd give it the thumbs up ;)
@leonbev I think they are to invested in ATT already.
@theinternetstom
*too* invested. Just saying...
sprint cdma + tmobile gsm + htc hd2
...................... Never gonna happen but I'd sell a kidney and healf my liver for it
sprint cdma + tmobile gsm + htc hd2
...................... Never gonna happen but I'd sell a kidney and healf my liver for it
@DefPoet
stupid comment system and double clicks
@DefPoet
stupid comment system and double clicks
According to J.D. Powers & Associates, T-Mobile ties for 1st place
with Verizon Wireless for the 2009 Wireless Call Quality Performance in the
West region.
Maybe this Google deal is already sewn considering the Nexus One is firmly in place there already.... Of course I'm on Sprint so I'd like to see all those phones come my way.. Who knows??... Exciting to speculate though...