A summary in Wednesday's CTIA SmartBrief should have stated that Deutsche Telekom's incoming chief, Timotheus Hoettges, will lead the board of T-Mobile USA after the T-Mobile USA-MetroPCS merger. SmartBrief regrets the error.
Deutsche Telekom wants to boost profitability at T-Mobile US and is willing to consider a partner to make it happen. "[I]t is our duty to go on improving the return on T-Mobile US," said DT CEO Timotheus Hoettges, adding, "If we find a partner who will help us to do so, we will obviously consider it."
T-Mobile US will have trouble competing against rivals AT&T and Verizon Wireless in future wireless spectrum auctions, said Timotheus Hoettges, the CEO of parent company Deutsche Telekom, who used that assertion to press for industry consolidation. Sprint has indicated it wants to buy T-Mobile US but regulatory concerns could hinder such a deal.
Owners of Sprint and T-Mobile US have reportedly begun direct negotiations to facilitate SoftBank's purchase of Deutsche Telekom's 67% stake in T-Mobile, according to a published report, which says the German telecom wants only cash to complete a deal. Deutsche Telekom CEO Timotheus Hoettges told Bloomberg that the company already has recouped its 2012 $10 billion write-down on T-Mobile because of the carrier's increased value.
MetroPCS shareholders' April 12 vote is now the final hurdle to T-Mobile USA merging with the prepaid carrier following the Committee on Foreign Investment's approval of the deal, the last regulatory step in the process. T-Mobile parent Deutsche Telekom will retain 74% ownership of the new company, which represents the fourth- and fifth-largest wireless carriers in the U.S.
T-Mobile USA's parent company will dominate the board of directors once T-Mobile's merger with MetroPCS is completed, with Timotheus Hoettges, the incoming head of parent Deutsche Telekom serving as chairman, MetroPCS disclosed Tuesday. The newly configured board will contain two current MetroPCS directors and six from German-based Deutsche Telekom, which will hold 74% control of the company. MetroPCS shareholders have scheduled an April 12 vote on the deal.