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T-Mobile USA to boost network investment
24 February 2012
Deutsche Telekom’s US subsidiary plans to introduce LTE in 2013 after failed takeover bid by AT&T
Deutsche Telekom will boost network investments in its subsidiary T-Mobile USA, following the failed takeover by AT&T.
René Obermann, CEO of Deutsche Telekom, told Bloomberg TV: “We are currently under pressure on the customer side. Nonetheless let’s not forget it’s a valuable asset. We will make the company more competitive, and therefore we’re planning to make an additional investment into the network technology and at the same time we look for structural options.”
In the two years 2012-13, DT will spend $4 billion to upgrade the T-Mobile USA network, with its cash flow to be used for funding the investments, said the report, citing Obermann.
Neville Ray, chief technology officer of T-Mobile USA, said: “The $4 billion go-it-alone investment plan is an extremely strong one that can reposition the brand and the business.”
T-Mobile USA may turn to capital markets for financing, said the report, citing T-Mobile USA head Philipp Humm, who said: “We are not at this point in time tapping independently into the US capital markets. We are interested in taking steps in that direction.” GTB
Further reading from Global Telecoms Business:
Deutsche Telekom 'may exit UK venture' 16 Feb 2012
T-Mobile USA 'in fund-raising moves' 09 Jan 2012
AT&T drops T-Mobile USA bid 20 Dec 2011