Deutsche Telecom would consider a merger, but won’t sell T-Mobile

According to Bloomberg, Deutsche Telekom AG  Chief Executive Officer Rene Obermann was speaking to a crowd of shareholders at an annual meeting in Cologne, Germany today and told them the telecom giant is not interested in a complete sale of T-Mobile USA. DT may be a bit gun-shy about a sale after its acquisition by AT&T collapsed when government regulators failed to approve the deal. Though a sale is out of the question, people familiar with matter suggest a merger or asset sharing deal is still on the table. T-Mobile could move ahead by combining assets with a smaller carrier like MetroPCS or Sprint.

T-Mobile is struggling financially and losing ground in the US to its bigger rivals Verizon Wireless and AT&T. The carrier lost 510,000 contract customers in the first quarter of 2012 and had to cut 2,800 jobs as it starts to cut costs and restructure its business. T-Mobile is also working to build out an LTE network, but it trails the competition which already have their 4G LTE networks up and running.

[Via Bloomberg and TmoNews]

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