After the biggest failed merger attempt in our modern day mobile industry, Deutsche Telekom, the parent to T-Mobile USA and partner in the UK’s Everything Everywhere wireless unit, may be looking to shutter their UK operations.
Bloomberg reported on Wednesday that Deutsche Telekom is evaluating options to make an exit from the UK. The UK’s Everything Everywhere carrier is currently the largest operator in the UK. T-Mobile UK merged with France Telekom in 2009 to create Everything Everywhere which surpassed O2 as the largest operator.
More after the break
Deutsche Telekom was looking forward to the proceeds from their sale of T-Mobile USA to second carrier in the United States, AT&T. With the money raised from the sale of T-Mobile, Deutsche Telekom was looking to pay down debt load and buy back 5 billion euros of their own shares.
Now, without that influx of cash, pressure is on for the German giant to do something in other areas of the world.
According to Bloomberg, Deutsche Telekom hasn’t yet solicited banks to facilitate a merger of any sort. Options for Everything Everywhere is to take a buy out from France Telecom, find a third party buyer for the entire operation or find a third party buyer for Deutsche Telekom’s half.
After the merger of T-Mobile and AT&T fell apart around Thanksgiving, T-Mobile USA CEO Phillip Humm took the stage at a private event at CES and seemed reinvigorated. Humm spoke about store transformations, new devices, growing their 4G HSPA+ network and reclaiming T-Mobile USA’s position as number one in the US in customer service.
It’s not clear what will happen with Everything Everywhere but we expect to see some kind of announcement in the coming months, perhaps May around CTIA?