Page 1 of 4 1 2 3 4 LastLast
Results 1 to 15 of 57

Thread: Deutsche Telekom Weighs IPO for T-Mobile USA

  1. #1
    Join Date
    Jun 2002
    Location
    Northeast US
    Posts
    1,413
    Device(s)
    LG G2
    Carrier(s)
    T-Mobile
    Feedback Score
    0

    Deutsche Telekom Weighs IPO for T-Mobile USA

    http://online.wsj.com/article/SB1000..._LEFTWhatsNews

    << article quoted below thanks to WSJ's use of paywalls... >>



    By JEFFREY MCCRACKEN And DANA CIMILLUCA
    Deutsche Telekom AG is preparing for a possible initial public offering or spin off of its U.S. T-Mobile arm, in an effort to assuage shareholders disenchanted with the company's share performance, according to people familiar with the matter.

    The German telecommunications giant has recently held discussions with a number of banks including Deutsche Bank AG about underwriting an IPO, which could help fund the unit's network buildout, or a spinoff, the people said. The company expects to make a final decision in the coming months. A spokesman for Deutsche Telekom declined to comment.

    Deutsche Telekom is historically risk averse and the people familiar with the matter caution the company may ultimately decide against an offering. Several years ago, the company began preparing an IPO for the entire T-Mobile unit, which includes wireless operators across Europe. It ultimately quashed the plan.

    Still, there is a feeling that "the status quo isn't working for T-Mobile," said one person familiar with the matter. Deustche Telekom has told outsiders it will spend the next few weeks holding internal meetings about the fate of T-Mobile USA and then come to a conclusion in the next two months

    Deutsche Telekom has struggled with T-Mobile USA ever since it acquired the former VoiceStream Wireless for $35 billion in 2001 at the height of the telecom boom. With about 33 million customers and annual revenues of around $19 billion, it has about 14% market share, making it the fourth-largest U.S. carrier. In the third quarter, 77,000 U.S. users walked away from T-Mobile.

    That's why T-Mobile USA must fund the build-out of new wireless technology that will keep its services current. Taking T-Mobile USA public would be a way to fund that expansion without relinquishing control of a business that had long been a corporate growth engine for Deutsche Telekom.

    Deutsche Telekom generated about €7 billion euros in free cash flow last year. But it ability to fund T-Mobile's infrastructure is constrained by the fact that it must pay a generous dividend to its dominant shareholder, the German government, which controls about 30% of the company through direct and indirect holdings.

    Other options under consideration include a partial spinout of the business, which would carve it into a separate entity with its own balance sheet. A merger with a U.S. rival is also on the table, though less likely, said these people.

    Should Deutsche Telekom go forward, the most likely scenario would be to sell about 20% of the division to investors and retain the rest, the people familiar with the matter said. A spinoff, on the other hand, would enable Deutsche Telekom to wash its hands of an underperforming division and offload some of its hefty debt pile But one of the people said that option could have negative tax implications in Germany.

    Based on an estimated earnings before interest taxes depreciations and amortization of $6 billion, T-Mobile USA would have an equity value around $20 billion and could handle about $12 billion or so in debt while maintaining an investment-grade rating, said people familiar with the matter

    Some proceeds could also be sent back to German shareholders such as Blackstone Group, which in April 2006 spent $3.3 billion (€2.68 billion euros) to acquire a 4.5% stake in DT. Blackstone bought the shares for €14 each. Today those shares trade around €9.24 euros, down roughly 10% over the last year.

    Late last year, Deutsche Telekom hired former Blackstone manager Thorsten Langheim to head up mergers and acquisitions. Mr. Langheim is heavily involved in the discussions over T-Mobile USA's fate.

    T-Mobile's merger options are limited. As a seller, T-Mobile would find regulators an obstacle to an acquisition by AT&T Inc. or Verizon Wireless. A combination with Sprint Nextel Corp. would bring together three separate network technologies, when Sprint has had trouble integrating two.

    —Matthew Karnitschnig
    and Roger Cheng contributed to this article.


  2. #2
    Join Date
    Aug 2004
    Location
    Brooklyn, NY
    Posts
    31,608
    Device(s)
    LG V20 and LG G Pad X 8.0
    Carrier(s)
    T-Mobile One Plan 6+1 lines
    Feedback Score
    0
    Perhaps the German company didn't realize that...
    Uncertain direction severely hinders the company growth.
    If the German parents were not that indecisive, T-Mobile USA should have had 40 or more million subs already!!!



    Optimum/Cablevision

  3. #3
    Join Date
    Oct 2004
    Posts
    1,017
    Device(s)
    Nokia Lumia 920
    Carrier(s)
    T-Mobile
    Feedback Score
    0
    Maybe putting all their eggs in the android basket wasnt such a good idea after all....
    The Last Nokia Fanboy

  4. #4
    Join Date
    Aug 2008
    Posts
    14,802
    Feedback Score
    0
    I noticed that since 2003, every year (with the exception of 2005) T-Mobile USA releases how many subscribers they finished the previous year with by the end of January. However, this year, they did not do so. See here:

    http://www.t-mobile.com/Company/Inve...iewArchive=Yes

    I bet that they did not do so this year because the numbers are not pretty.

  5. #5
    Join Date
    Sep 2009
    Posts
    8,914
    Carrier(s)
    TMobile
    Feedback Score
    0
    i like tmobile alot and hoped they would put out some nice numbers from the new plans but it appears that maybe the new plans didnt help out as much as we thought.

    pure speculation at this point though.

  6. #6
    Join Date
    Nov 2009
    Posts
    51
    Device(s)
    Touch Pro2
    Carrier(s)
    Sprint
    Feedback Score
    0

    Deutsche Telekom Possibly Looking To Sell T-Mobile

    According to sources cited by the Wall Street Journal, Deutsche Telekom is weighing options for its T-Mobile USA property. One possibility would be to hold an initial public offering for the unit to build capital that could be used to offset the costs of building out T-Mobile USA's 3G network. The other consideration is an outright sale of the unit to another company or group of investors. Deutsche Telekom's shareholders have been consistently unhappy with T-Mobile USA's financial performance...story here

    The next thing that comes to mind is who could buy them? The FCC would never AT&T aquire T-Mobile. Possibly one of the cable companies as Cox already is testing it's LTE network. What's your thoughts?

  7. #7
    Join Date
    Apr 2003
    Location
    Tennessee
    Posts
    134
    Device(s)
    HTC Thunderbolt
    Carrier(s)
    Verizon
    Feedback Score
    0
    T-Mobile is a great company. They really need to market their customer satisfaction ratings, i.e. JD Power. Although they cannot state Consumer Reports rating, they could word the marketing so a user will know where the rating is from.

    As far as call quality, they do have better call quality than VZ and they should brag about this. I have Blackberry and at times it sounds like a walkie talkie and calling through a tin can, but VZ data speeds are great. In fact when I tether, TM and VZ speeds are about the same. I am saying they should brag about their speeds.

    The issue with growth is perception of having poor network coverage and data speeds. They need to do a better job with marketing their 3G and HSPA in cities. This may mean they should move to local marketing in areas where they have great 3G and HSPA. ie. Atlanta, Birmingham and other cities. In fact, I think they have better coverage in these cities than ATT.

    Where T-Mobile lacks is with the corporate user. They are reluctant to do contracts with corporations. They need to be flexible with corporate plans and not tie a corporate user to 2 year contracts. ATT and VZ works well with corporate users and flexible plans they offer corporations. IF a corporate user has ATT or VZ chances are they have ATT and VZ for personal.

    Now my opinion on their future. If DT does not keep them, look to Google as a possible suitor. Google wants into the wireless market. In fact did they not buy some spectrum? If Google wants in the wireless market now and not have to build out, they have an opportunity with T-Mobile.

  8. #8
    Join Date
    Jun 2004
    Location
    New York
    Posts
    152
    Carrier(s)
    T-Mobile US
    Feedback Score
    0
    I hope T-Mobile has the iPhone card in their sleeves. This is probably the only way to gain post-paid customers in substantial numbers.

  9. #9
    Join Date
    Apr 2008
    Location
    Saint Louis, Missouri, United States, 111718848845755, Saint Louis, Missouri
    Posts
    523
    Device(s)
    Blackberry Curve 8900
    Carrier(s)
    T-mobile USA
    Feedback Score
    0
    No spin off of T-mobile!
    their the only network i like besides virgin mobile, and sprint is murdering virgin mobile =[
    i had an unlocked iphone on t mobile and it was amazing, if i can get the iphone with T 3G then im hooked for life..

  10. #10
    Join Date
    Sep 2005
    Location
    Glen Head
    Posts
    1,294
    Device(s)
    iPhone 6S Plus 128GB Space Grey (SIM Free)
    Carrier(s)
    Sprint
    Feedback Score
    0
    I guess Project Black wasn't all it was cracked up to be...

    Surprise! (NOT!)

    I didn't change to one of the new "plus" plans because I balked at paying $35 for the privilege of doing the work myself and making a few changes on their website.

    If Google takes over T-Mobile does it become G-Mobile?
    --
    I support the right to keep and arm bears.

  11. #11
    Join Date
    Feb 2006
    Posts
    434
    Device(s)
    Nexus 6P, Nexus 5X, Nexus 5
    Carrier(s)
    Cricket Wireless
    Feedback Score
    0
    You can take it to the bank that 5 years from now there will only be “the big 2″ AT&T and Verizon. The United Corporations of America have determined the way to improve profits is to allow any and all mergers regardless of it’s effect on competition, customer service, or quality of service. We have the best government money can buy. Look for T-Mobile to be sold to ATT maybe not today, maybe not tomorrow, but certainly by the mid part of the decade.

  12. #12
    Join Date
    Feb 2006
    Posts
    434
    Device(s)
    Nexus 6P, Nexus 5X, Nexus 5
    Carrier(s)
    Cricket Wireless
    Feedback Score
    0
    Quote Originally Posted by pcjnyc
    I hope T-Mobile has the iPhone card in their sleeves. This is probably the only way to gain post-paid customers in substantial numbers.
    Don't hold your breath
    http://gigaom.com/2010/02/04/att-see...-2011-analyst/

  13. #13
    Join Date
    Feb 2007
    Location
    Detroit area
    Posts
    2,141
    Device(s)
    iPhone 4 VZW
    Carrier(s)
    VZW
    Feedback Score
    0
    man, T-Mo US is doing better than ever, has a lot of great devices and more on the way... I hope this doesn't mean bad things for us T-Mo people...

    http://www.engadget.com/2010/02/04/d...e-usa-spinoff/

    > Clearnet PCS: Nokia 6188 (1999)

    -> Bell : Nokia 6185 -> Motorola ST7867W (99-01)

    --> AT&T: Nokia 6360 -> Nokia 6200 - (01-04)

    ---> Verizon: LG VX6000 -> Motorola E815 - (04-07)

    ----> Cingular/AT&T: Samsung Blackjack -> 8525 -> RAZR V3xx -> iPhone (RIP) -> iPhone 3GS - (Jan 07-Dec 09)

    -----> T-Mobile: iPhone 3GS (unlock) -> Nexus One -> 9700 - (Dec 09-Jun 10 )

    ------> AT&T: iPhone 4 -> iPhone 3GS - (Jun '10-Mar '11)

    -------> Verizon: iPhone4 - (Mar '11-TBD)

  14. #14
    Join Date
    Feb 2009
    Posts
    12
    Feedback Score
    0

    Let AT&T Buy T-mobile

    T-mobile at times makes no sense, they did away with roaming agreements with at&t in about 100 markets from coast to coast and they wonder why they are losing customers left and right. The Android phones or any hand set is not the single answer, How about coverage? With out that i don't care what phone you have it will not work.So they tried to save money from not paying the roaming agreements and in 3rd qrt lost 77,000 customers i do not know 4th qtr numbers but i am sure it is not good.Project Black is set up in the complete oppisite of any common sense.Oh ya let pay ZETA 3 mill. If T-Mobile continues down this path there will be no T-Mobile and your choices will still be AT&T, sprint or the big V. Just one point of view

  15. #15
    Join Date
    Sep 2005
    Location
    Glen Head
    Posts
    1,294
    Device(s)
    iPhone 6S Plus 128GB Space Grey (SIM Free)
    Carrier(s)
    Sprint
    Feedback Score
    0
    If T-Mobile does go away, I don't know what I would do. I had Sprint and their CS was garbage. Granted it was some time ago but the bad memories linger. My sister has Verizon and she has spotty coverage at my home so I would not go with VZW. AT&T is a just a massive disaster so they are out. Perhaps prepaid service would be my best route in that case.

    they did away with roaming agreements with at&t in about 100 markets from coast to coast
    They dropped roaming in upstate NY around Elmira before they had their network in place which was quite frustrating since on trips through the area I was stuck on Emergency Only service. However, their network has been in place for over a year there now so the AT&T agreements were no longer needed there.

Page 1 of 4 1 2 3 4 LastLast

Bookmarks