Deutsche looks to reposition T-Mobile USA through MetroPCS merger

12 April 2013 | Mitch Sayers


Deutsche Telekom's increase in concessions to push through its acquisition of MetroPCS is reportedly part of a wider strategy to increase T-Mobile USA's presence in the market.

The German operator announced this week it would reduce the merged company's overall debt in a bid to appease MetroPCS shareholders which deemed the original bid as too low.

According to Reuters, Deutsche Telekom is angling the merger towards repositioning T-Mobile USA, its American arm, in a competitive position amongst rivals.

AT&T and Verizon are the clear market leaders, beating competition from both T-Mobile USA and Sprint in terms of infrastructure development and next-generation mobile development.

Deutsche Telekom's US arm lost 515,000 contract customers in the fourth quarter of 2012 but announced 2013 first-quarter data earlier than required, showing smaller losses of 199,000 contract customers.

The company's CEO John Legere announced a tariff shake-up in an effort to distinguish T-Mobile in the consumer market place.

The German operator has looked for ways to strengthen its US subsidiary after a sale to AT&T for $39 billion was blocked by anti-trust regulators and talks with Sprint over a deal came to nothing.