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US: T-Mobile future looks bleak without a merger

By  |  January 19, 2015
US: T-Mobile future looks bleak without a merger

T-Mobile has helped give mobile phone customers more viable options in the US, but CEO of owner company Deutsche Telekom, stated that T-Mobile’s approach is is not sustainable.” The company has lost money in five of the last six quarters and admits to having to invest $4 — $5 billion a year in order to compete with rivals Verizon Wireless and AT&T. T-Mobile attempted a sale to Sprint last year, but Sprint pulled out the US regulatory authorities wanted to maintain four nationwide mobile phone companies.

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    Telekom CEO Timotheus Höttges stated in an interview that T-Mobile is looking for a merger since he believes that is the only way for the company to become viable. He admitted that T-Mobile had aggressively spent to build its infrastructure and widely promoted itself, but that “you have to earn your money back at one point in time.”

    Full Content: ARS Technica

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