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Germany: The Sprint/T-Mobile saga from Deutsche Telekom’s viewpoint

 |  February 11, 2014

As media continue to speculate whether Sprint will actually move forward with its rumored plans of a T-Mobile acquisition, despite opposition from US regulators, reports say T-Mobile parent company Deutsche Telekom has its own struggle to decide whether or not to exit the US market.

The German telco is reportedly looking to offload T-Mobile due to its stance as the fourth-place wireless operator in the US. Such a position is seen to limit long-term profitability for Deutsche Telekom, sources said.

Selling T-Mobile would also free-up assets for the German firm to reinvest in wireless operations in its home nation and strengthen its position in eastern Europe.

But Deutsche Telekom is reportedly not racing to sell the US operator to Sprint, sources said, as it is looking to avoid another mishap similar to its failed pursuit of selling T-Mobile to AT&T in 2011.

Deutsche Telekom’s new chief executive, Tim Hoettges, reportedly played a key role in negotiations with the T-Mobile/AT&T deal, and is therefore familiar with the hurdles the company is likely to face should Sprint attempt to acquire the firm.

Full Content: Euro News

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