T-Mobile Merger On The Horizon?

Nov 20 2009, 12:20pm CST | by Robert Evans

Alright, so here's what we know. T-Mobile has had a tough few quarters. Their Q3 numbers were not good, and rumors abound that Deutsche Telekom is considering drastic action. It's possible that they will even sell T-Mo, although that would obviously be their last course of action. Right now, they appear to be looking at the possibility of a merger.

A report in the German newspaper Handelsblatt has all the bloggers (FierceWireless) speculating like madmen over the possibilities of a T-Mo merger. The newspaper stated that Deutsche Telekom is looking for partners for T-Mo, in order to help the ailing carrier stagger back to solvency. AT&T, Clearwire, and MetroPCS were named as possible partners.

None of those carriers have commented yet, and the talks are believed to still be in the earliest stages. It's entirely possible (perhaps even most likely) that DT will go with outside financial investors to help prop up T-Mobile.

This news doesn't mean the end for T-Mo, not by a long shot. But it's also not very good news. If the carrier can't find a way to get back into the black within the next quarter or two, it's likely DT will take action. On the plus side, this news is pretty solid confirmation that those terrifying rumors of T-Mobile buying Sprint were untrue.

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Robert Evans
The excitement about new smartphones, tablets and anything mobile drive Robert to unearth the latest rumors and developments in this fast moving space. He adopted 4G as soon as it become available and knows where the mobile market is going.
Robert can be contacted directly at robert@i4u.com.