T-Mobile's Value Shaky Without AT&T Sale
With AT&T's bid challenged by the U.S. Department of Justice, T-Mobile continues to lose value. As the fourth-largest wireless carrier, T-Mobile faces increased competition from AT&T, Verizon and Sprint Nextel, all of whom continue to add 4G capacity. As one commentator put it, since the AT&T $39 billion bid in March "T-Mobile has largely sat on its hands, watching its profit, sales and market share sink as it goes without any major handset or network upgrades."
T-Mobile's German parent, Deutsche Telekom, had concluded some time ago that its U.S. subsidiary was adding nothing to its portfolio ("a white elephant" said one telecom-watcher), and made the decision to cut its losses. With the AT&T sale threatened, Deutsche Telekom has few other promising options, as it watches T-Mobile continue to lose value.
Although a number of cable and Internet giants have been considered possible buyers of T-Mobile, none of them have a experience, capacity or cash that AT&T does. The other potential buyer, Sprint Nextel — aside from being an anti-worker employer — already runs three separate networks, and will possibly add a fourth. Adding T-Mobile would create a carrier of stunning complexity.
So, yes, it appears that without AT&T, T-Mobile is likely to continue life as a sad, white elephant, possibly to be broken up into components.
Without AT&T, T-Mobile is a wireless white elephant (CNN Money)
CWA members oppose AT&T’s attempts to stop serving rural and low-income communities in California
CWA urges FCC to deny industry attempts to loosen pole attachment standards
CWA District 6 reaches agreement with AT&T Mobility