Deutsche Telekom Still Wants to Sell the Uncarrier

Posted by at 2:26 pm on January 19, 2015

Deutsche Telekom, majority owner of T-Mobile, believes the Uncarrier’s best chances of success are to merge with or be acquired by another large carrier.

Deutsche Telekom CEO Tim Hoettges, speaking to Re/code, said T-Mobile lacks the scale enjoyed by rivals AT&T and Verizon Wireless. Without that scale, it will be hard for T-Mobile to compete in the long run.

“I was intrigued by the idea of having a combination with Sprint and being the ‘super-maverick’ in the market,” said Hoettges, “I hope that the political environment will change at one point in time.”

Sprint’s parent, SoftBank, abandoned the idea of acquiring T-Mobile last year after regulators said the deal would face major hurdles in scoring approval.

While Hoettges praised T-Mobile CEO John Legere for enacting change and turning the company around with aggressive promotions, he said T-Mobile cannot hold its current course indefinitely.

“The question is always the economics in the long term,” said Hoettges. “You have to earn your money back at one point in time.”

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