In the mobile industry, you need to be at the top of your game. Otherwise, with cutthroat competition, you might find yourself being overshadowed by the bigger companies. For some, though, it’s better to go for mergers and acquisitions rather than fight each other.
Reports have it that Deutsche Telekom is planning to acquire super-regional carrier MetroPCS. Now DT, which is based in Germany, owns T-Mobile and a host of other telecommunications companies in other countries. You might recall that it was DT that was in talks with AT&T for the planned AT&T and T-Mobile merger (which many fondly called AT&TMo) last year, which did not push through. Many will also recall that AT&T had to pay billions to T-Mobile in damages due to the regulators’ disapproval of the deal.
Now it seems Deutsche Telekom is not selling off its subsidiary, but is, in fact, planning to acquire another mobile company. We have a confirmation from MetroPCS itself, which issued a statement saying they are in talks with the German firm, but will not comment further until an agreement is reached.
Whatever the discussions, the companies will have to work around their differing wireless technologies and marketing thrusts. And because a combined T-Mobile and MetroPCs is not as big as the planned AT&T and T-Mobile merger, the regulatory authorities are not likely to cry “anti-competition” on this one.
Check out the full press release below.
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