Sunday, October 14, 2012

Deutsche Telekom Expects T-Mobile USA + MetroPCS Deal to Close in Q2 2013

Deutsche Telekom expects the  T-Mobile USA + MetroPCS merger to be completed in Q2 2013.  Tim Höttges, Deutsche Telekom's CFO, said the stock-swap transaction will not involve any cash changing hands and offers a big value in terms of new subscribers, spectrum and operational synergies.

Höttges said T-Mobile USA will receive more than nine million additional customers, as well as valuable spectrum for improving services in many urban areas. The deal also gives a huge boost to the expansion of the LTE network.

calculates the value of these cost synergies at between six to seven billion dollars, and that’s without including revenue synergies.

After the transaction, Deutsche Telekom will own 74 percent of an extremely promising company.