It's Time for Deutsche Telecom to Think About Plan B for T-Mobile

 
 
By Wayne Rash  |  Posted 2011-09-07 Email Print this article Print
 
 
 
 
 
 
 

News Analysis: Now that antitrust suits have nearly slammed the door on AT&T's attempt to take over its competitor, T-Mobile needs a path to the future. Maybe it's time to find a way to grow independently.

Perhaps the most stunning revelation to come out of the mess surrounding the filing of antitrust lawsuits by the U.S. Department of Justice and Sprint Nextel is the fact that T-Mobile's owner, Deutsche Telekom, apparently doesn't have a Plan B.

Apparently, it never occurred to DT's German ownership that the U.S. government would have other ideas. This is perhaps the best illustration that Deutsche Telekom never really understood Americans or the U.S. business environment. Perhaps now they're getting a glimmer.

Of course, it's possible that AT&T convinced DT's managers that this merger was a done deal-that once AT&T spread some of its billions of dollars around the U.S. political scene, there would be no opposition. If DT believed that, then that's yet another indication that they really didn't understand the U.S. The problem is, when the merger is turned down-and it will be-T-Mobile is left without any place to go.

Don Reisinger suggested that T-Mobile should merge with Sprint, but that option is fraught with problems ranging from market concentration to incompatible networks. There has also been a suggestion that Google should buy T-Mobile, which could make sense, if only because that would let Google have its own mobile means of application and data delivery to go with its hardware and software businesses.

After all of this, would T-Mobile be in a position to pick up the pieces and move forward on its own? Interestingly, it might. If you've been watching what T-Mobile is up to lately, you'd see that the company is aggressively seeking new business; it's started up a new small and medium business effort, and it's offering a lot of new phones to go with T-Mobile's ads that claim the largest, fastest 4G network in the U.S. This doesn't sound to me like a company that's ready to throw itself into the arms of the next available suitor.

It's also worth noting that there are a number of things that T-Mobile hasn't done while the legal maelstrom has swirled around it. One thing it hasn't done is comment on much of anything. While T-Mobile's Washington, D.C., lobbyist has spouted the AT&T party line a couple of times and Deutsche Telekom has said that it's committed to the merger, T-Mobile itself has said nothing. The company has simply continued to introduce new phones, including the first 4G BlackBerry. An internal memo has urged employees to proceed on course, as if the merger didn't exist.



 
 
 
 
Wayne Rash Wayne Rash is a Senior Analyst for eWEEK Labs and runs the magazine's Washington Bureau. Prior to joining eWEEK as a Senior Writer on wireless technology, he was a Senior Contributing Editor and previously a Senior Analyst in the InfoWorld Test Center. He was also a reviewer for Federal Computer Week and Information Security Magazine. Previously, he ran the reviews and events departments at CMP's InternetWeek.

He is a retired naval officer, a former principal at American Management Systems and a long-time columnist for Byte Magazine. He is a regular contributor to Plane & Pilot Magazine and The Washington Post.
 
 
 
 
 
 
 

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