Sep 01 AT 8:55 AM Anthony Domanico 47 Comments

Deutsche Telekom responds to DOJ antitrust suit; who else could buy T-Mobile?

Tmobile

August has certainly been one of the craziest months on record for the telecom industry. The month went out with a bang; the US Department of Justice filed an antitrust suit attempting to kill the proposed merger between AT&T and T-Mobile.

In the chaos yesterday, both AT&T and Sprint issued official responses to the filing, but Deutsche Telekom was notably absent. We knew they wouldn’t remain silent for long, and late yesterday evening, the company issued the following statement.

On August 31, 2011, the United States Department of Justice (DOJ) informed Deutsche Telekom that it will file a complaint in the US District Court for the District of Columbia seeking a permanent injunction blocking the proposed stock purchase agreement between AT&T and Deutsche Telekom under which AT&T will acquire T-Mobile USA from Deutsche Telekom.

Deutsche Telekom is very disappointed by the DOJ's action and will join AT&T in defending the contemplated merger against the complaint in court. DOJ failed to acknowledge the robust competition in the US wireless telecommunications industry and the tremendous efficiencies associated with the proposed transaction, which would lead to significant customer, shareholder and public benefits. We appreciate the DOJ's willingness to discuss possible remedies to address the competitive concerns.Philipp SchinderaDeutsche Telekom

The main argument presented by Deutsche Telekom is that the DOJ failed to recognize the “tremendous efficiencies” that would certainly come from a merged AT&T-mobile. Additionally, Deutsche Telekom added that it was willing to discuss the competition issues that naturally arise from any merger/acquisition, and appreciates the DOJ’s willingness to discuss the issues.

Whether you buy into these arguments or not, they are certain to be a focal point when AT&T and T-Mobile square off against the Department of Justice in court. One thing’s for sure: AT&T and T-Mobile certainly aren’t going to back down, as both companies are dead set on making the merger a reality.

Speculation – What If the Deal Doesn’t Happen?

Whether or not the Department of Justice filing can successfully block the deal between AT&T and T-Mobile, Deutsche Telekom has made it painfully clear that they want out of the US telecom industry. Even the $3 billion cash infusion from AT&T will not likely be enough to save the beloved Magenta.

This strongly suggests that T-Mobile is going to be bought by someone, but who other than AT&T wants in on the action? Rather than rehash speculation that’s already been beaten to death by other blogs, I highly suggest you read Sascha Segan’s article in PCMag, which elaborates on why Sprint, Apple, Google, Cable Companies, America Movil, Wind Mobile and T-Mobile’s own investors might be interested in purchasing T-Mobile USA.

Who do you guys want to buy T-Mobile USA if the proposed deal with AT&T falls through? Sound off in the comments.

Source: T-Mobile

Anthony loves all things technology, from hardware to apps and games. You can connect with him via Google+ or Twitter by clicking one of the fancy doo-dads above.

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  • BiGMERF

    Google buying Tmobile would be an absolute dream come true !! LOL

    • http://www.anthonydomanico.com Anthony Domanico

      I think google and apple are actually the least plausible of the bunch.

      • BiGMERF

        so do i ….. it would cause to many questions, like will Google favor Tmo over every other crrier and leave its best for it.. Out of all the carriers the least amount of iphone rumors involve Tmobile.

        • jdog25

          Google pretty much always favors T-mobile first. T-mo was the first Android carrier, first to support Google’s second phone the Google Ion, first to get the Nexus One and first to get the Nexus S.

          So what would change again.

          I didn’t come to T-mo for Android but thanks to Google I have stayed around for it.

    • JPB

      The DOJ had objections to AT&T + T-Mobile. I’m sure they’d be all over Google+Motorola+T-Mobile as soon as the ink is dried on the paper.

      • StealthVoodoo

        Why?

        The reason the ATT & TMo deal is raising such a stink is because that would leave 1 national gsm carrier. Google buying TMo would still leave 2.

        The argument that a content provider can’t merge with a content conduit is moot since Xfinity/Comcast was allowed to buy NBC.

    • Jeff

      At&t needs to buy T-Mobile.This we be abig plus for everyone. Its no different than Verizon Wireless buying Alltell.

      • DJ

        Um its signigicantly different tan Atlltell buying VZW. Simple Fact if AT&T eats up T-Mobile(1 of the LAst 2 National GSM providers) that would leave an instant monopoly of GSM providers and reason why GSM is such a big deal becasue every other country uses GSM(sim cards) versus CDMA(Verizon and Sprint). Now the fact that DT doesn’t want T-Mobile bothers me becasue if any cell companies buy T-Mobile rather it be Verizon AT&T sprint that will still ultimately give AT&T a GSM monopoly. Unless sprint was smart and decided to buy T-Mobile thus creating a Triopoly of Cell phone companies that would actually be true competion #1 AT&T with approx 108mil #2 Verizon approx 98mil #3 the new SPRINT-NEXTEL-T-MOBILE(lol) with about 90 mil. That sounds much more competitive to me.

  • Yvestr

    Apple! They have the cash to do it and can completely transform this industry which is in need to be! needed. This could be a game changer.

    • JPB

      For the same reason stated above for Google, the DOJ would have lots of problems with Apple being a hardware, software, PLUS a network provider.

      I think for this deal to be acceptable in the US, it has to be someone other than Google or Apple or even Microsoft.

    • ihatefanboys

      Apple has cash because idiots dont research and keep buying anything with an apple logo on it. just from a apple eating perspective, i wouldnt buy an apple with a bite in it already, yuck. plus name one thing apple has done, innovation wise, the last 3 yrs ???? made the ipod smaller ? stop watching porn and jacking off all day.

  • Vance

    I think AndroidandMe should buy them

    • http://www.anthonydomanico.com Anthony Domanico

      Yes! We’ll scrape up all the money we have, and make an offer they can’t refuse!

      • http://www.anthonydomanico.com Anthony Domanico

        Of course, that would be like $500, well short of the $39B from AT&T. :)

        • Vance

          I’ll spot you $500 for 2.5% ownership and some Androindandme SWAG :)

          • http://www.anthonydomanico.com Anthony Domanico

            deal. ha

          • bpear

            Lets all (100 million+ android users) chip in $300, that would be $30B total, then we could all own a % of a carrier :D

  • Noel

    I have long wished Google should buy or partner with Tmobile. I am convinced if Google decides to jump in, they have the capability to Transform Magenta to a network with super fast data speeds and obviously it will be Android heaven as well as home to other devices. Google already have a project in the midwest to provide astronomical internet speeds to some city…not sure if it is Kansas city. In my view Tmo has always been an innovation leader..they stood shoulder to shoulder with Google and HTC to bring us Android when all the other carriers stood on the side lines not until they saw Androids promise did they decide to jump in. If i’m not mistaken they also to the lead in HSPA+ data speeds. My choice is for Google to buy if DT still wants out. They will be the perfect fit.

  • j

    My vote is for Amazon. Just imagine the fun they could have being a network of choice for their new series of tablets/readers.

    • http://www.anthonydomanico.com Anthony Domanico

      Amazon is actually an interesting suggestion. I wonder if they’d be interested? ha

      • Doctor Who

        What about Walmart? They use Tmobile to run their value cell phone plans.

    • http://pryvateidz.posterous.com Dave

      Google or Amazon are both great potential buyers. I didn’t even think to say Amazon. But, I think Google & T-Mobile would be a match made in heaven, seriously. Not even because of Google Android (Which I’m starting to stray away), but the fact that they’re both innovative, so they will push innovation, I think Google will comply w/ T-Mobile’s affordable prices & services, Google has the money & smarts to expand T-Mobile to it’s highest potential. Plus, I think Google loves T-Mobile. They gave T-Mobile Android 1st. They gave T-Mobile the 1st set of Androids to run unlocked on their network (Nexus One), & remember when the Nexus S 1st game out, it was exclusively to run on T-Mobile’s network only.

  • Shane

    Would be awesome for me personally if Google bought them. software developer(Google) + hardware developer(Motorola) + wireless carrier (T-Mobile) = Win. Then in my dreams Apple buys AT&T and the smartphone riots begin ! OK maybe not.

  • vauge

    metro pcs

  • triangle

    I think it could be an international carrier. Vodafone was interested in buying AT&T Wireless in 2004, but was outbid by Cingular. Now Vodafone would need to sell its stake in Verizon Wireless, which is a cash cow for them, but they would have control of their own US wireless carrier that is on the same technology that they use worldwide. I think they would make a credible suitor, though I’m not sure the current CEO there is looking to make splashy investments (preferring to focus on shareholder returns).

  • Ann Monis

    What are the laws in the US about a foreign carrier buying a carrier that operates in the US (i.e Rogers in Canada)

    Now that be something. Rogers + T-Mobile would mean no more roaming charges for T-Mobile users coming to Canada and vice versa.

    • http://daniel.friesen.name/ Daniel Friesen

      If a Canadian company could buy T-Mobile I would rather see Wind Mobile buy T-Mobile over one of the Big-3. Wind and T-Mobile both make use of the AWS band and hence have phones that are made to work on that, in fact if you drop into a Wind Mobile store besides the phones that Wind sells you might see a boxed up T-Mobile phone ready for sale.
      Having a tie to a company in the US pulling in new phones, and at that phones which should already work on Wind would be nice (Wind is slow on the uptake there). Similar advantages for roaming there too, though I suppose the US side might not be as happy since Wind’s network is still growing. Though being a Canada+US carrier might give the company more resources to expand faster, and encourage Wind to expand the network’s towers closer to the border.

  • http://freeourfreemarkets.org sbanicki

    If it is allowed to fail, at least the customers will be dispersed among the remaining three providers. It is not our job to help T-Mobile find a buyer at the expense of the market. http://freeourfreemarket.org

  • https://plus.google.com/101734779295883866329/posts Karbide

    So if Google where to buy T-Mobile… possible names… T-Google…Google Mobile?

    • https://plus.google.com/101734779295883866329/posts Karbide

      T-Googlerola Mobile

    • micahh

      G-Mobile

      • Jr.

        G-Mobilerola =]

  • Raptor

    Tell us about benefits for customers, T-Mo.
    Run your business and compete.

    When prices will drop to $20/mo for ulimited everything then you will have to merge

  • inviolable

    A Cablevision purchase would make a lot of sense.

  • Dirty_Azkals

    One on the small VNO phone carriers or a group of them. No more paying for someone’s network when they can pool together and own the network. With their numbers they will still be 4th.

  • Tran Lang

    Come on Google, make our dreams come true.

  • Eludium Q36

    I don’t think the track record for beating the DoJ in these matters is encouraging for ATT/DT. They just don’t want to pay Billions to T-Mo for the Failed Deal fee. However, all the usual suspects could buy T-Mo: Google, Microsoft, and Apple and toss Amazon in there too.

  • kazahani

    Why doesn’t Tmobile use the 3 bil from ATT to buy back their stock from Deutch Telecom? Sure, it would take more money than that, but if ATT can raise the capital, Tmobile should be able to do the same.

    • http://www.anthonydomanico.com Anthony Domanico

      Because, the $3M will go to Deutsche Telekom, not T-Mobile USA

  • cb2000a

    Maybe Nabisco? They could offer phone discounts in cracker boxes or possibly Ford so they could have their own type of On Star system or maybe Microsoft so they could have somewhere to sell Windows phones.

  • Iris

    What robust competition? They’re all in lockstep in pricing. Are they confusing the resellers with the actual carriers? And this creates one GSM carrier.

  • ihatefanboys

    GOOGLE. bottom line, first choice, best choice. i would get behind a “g-mobile”. at least it would guarantee a G3 when my contract is up with my G2

    13 months to a new phone…..blah

  • ihatefanboys

    i personally hope Google buys both HULU and T-Mobile…

  • bpear

    how bout all the 100M+ android users chip in $300 then we would have over $30B to over to buy tmobile :D we could all own a % of a carrier and make it the best ever lol

  • bpear

    How bout all the 100M+ android users chip in $300 then we would have $30B+ and we could all own a % of a carrier and make it the best :)

  • Rashad

    If Google buys T-mobile then they would be vertically integrated:
    Android OS –> Motorola Phone –> T-mobile wireless service.

    I could only dream of the possibilities…

  • brseattle

    google, Google, GOOOOGLE!!

  1. Google buying Tmobile would be an absolute dream come true !! LOL

    • I think google and apple are actually the least plausible of the bunch.

      • so do i ….. it would cause to many questions, like will Google favor Tmo over every other crrier and leave its best for it.. Out of all the carriers the least amount of iphone rumors involve Tmobile.

        • jdog25Guest 4 years ago

          Google pretty much always favors T-mobile first. T-mo was the first Android carrier, first to support Google’s second phone the Google Ion, first to get the Nexus One and first to get the Nexus S.

          So what would change again.

          I didn’t come to T-mo for Android but thanks to Google I have stayed around for it.

    • JPBGuest 4 years ago

      The DOJ had objections to AT&T + T-Mobile. I’m sure they’d be all over Google+Motorola+T-Mobile as soon as the ink is dried on the paper.

      • StealthVoodooGuest 4 years ago

        Why?

        The reason the ATT & TMo deal is raising such a stink is because that would leave 1 national gsm carrier. Google buying TMo would still leave 2.

        The argument that a content provider can’t merge with a content conduit is moot since Xfinity/Comcast was allowed to buy NBC.

    • JeffGuest 4 years ago

      At&t needs to buy T-Mobile.This we be abig plus for everyone. Its no different than Verizon Wireless buying Alltell.

      • DJGuest 4 years ago

        Um its signigicantly different tan Atlltell buying VZW. Simple Fact if AT&T eats up T-Mobile(1 of the LAst 2 National GSM providers) that would leave an instant monopoly of GSM providers and reason why GSM is such a big deal becasue every other country uses GSM(sim cards) versus CDMA(Verizon and Sprint). Now the fact that DT doesn’t want T-Mobile bothers me becasue if any cell companies buy T-Mobile rather it be Verizon AT&T sprint that will still ultimately give AT&T a GSM monopoly. Unless sprint was smart and decided to buy T-Mobile thus creating a Triopoly of Cell phone companies that would actually be true competion #1 AT&T with approx 108mil #2 Verizon approx 98mil #3 the new SPRINT-NEXTEL-T-MOBILE(lol) with about 90 mil. That sounds much more competitive to me.

  2. YvestrGuest 4 years ago

    Apple! They have the cash to do it and can completely transform this industry which is in need to be! needed. This could be a game changer.

    • JPBGuest 4 years ago

      For the same reason stated above for Google, the DOJ would have lots of problems with Apple being a hardware, software, PLUS a network provider.

      I think for this deal to be acceptable in the US, it has to be someone other than Google or Apple or even Microsoft.

    • Apple has cash because idiots dont research and keep buying anything with an apple logo on it. just from a apple eating perspective, i wouldnt buy an apple with a bite in it already, yuck. plus name one thing apple has done, innovation wise, the last 3 yrs ???? made the ipod smaller ? stop watching porn and jacking off all day.

  3. I think AndroidandMe should buy them

  4. NoelGuest 4 years ago

    I have long wished Google should buy or partner with Tmobile. I am convinced if Google decides to jump in, they have the capability to Transform Magenta to a network with super fast data speeds and obviously it will be Android heaven as well as home to other devices. Google already have a project in the midwest to provide astronomical internet speeds to some city…not sure if it is Kansas city. In my view Tmo has always been an innovation leader..they stood shoulder to shoulder with Google and HTC to bring us Android when all the other carriers stood on the side lines not until they saw Androids promise did they decide to jump in. If i’m not mistaken they also to the lead in HSPA+ data speeds. My choice is for Google to buy if DT still wants out. They will be the perfect fit.

  5. jGuest 4 years ago

    My vote is for Amazon. Just imagine the fun they could have being a network of choice for their new series of tablets/readers.

    • Amazon is actually an interesting suggestion. I wonder if they’d be interested? ha

      • Doctor WhoGuest 4 years ago

        What about Walmart? They use Tmobile to run their value cell phone plans.

    • DaveGuest 4 years ago

      Google or Amazon are both great potential buyers. I didn’t even think to say Amazon. But, I think Google & T-Mobile would be a match made in heaven, seriously. Not even because of Google Android (Which I’m starting to stray away), but the fact that they’re both innovative, so they will push innovation, I think Google will comply w/ T-Mobile’s affordable prices & services, Google has the money & smarts to expand T-Mobile to it’s highest potential. Plus, I think Google loves T-Mobile. They gave T-Mobile Android 1st. They gave T-Mobile the 1st set of Androids to run unlocked on their network (Nexus One), & remember when the Nexus S 1st game out, it was exclusively to run on T-Mobile’s network only.

  6. ShaneGuest 4 years ago

    Would be awesome for me personally if Google bought them. software developer(Google) + hardware developer(Motorola) + wireless carrier (T-Mobile) = Win. Then in my dreams Apple buys AT&T and the smartphone riots begin ! OK maybe not.

  7. vaugeGuest 4 years ago

    metro pcs

  8. I think it could be an international carrier. Vodafone was interested in buying AT&T Wireless in 2004, but was outbid by Cingular. Now Vodafone would need to sell its stake in Verizon Wireless, which is a cash cow for them, but they would have control of their own US wireless carrier that is on the same technology that they use worldwide. I think they would make a credible suitor, though I’m not sure the current CEO there is looking to make splashy investments (preferring to focus on shareholder returns).

  9. Ann MonisGuest 4 years ago

    What are the laws in the US about a foreign carrier buying a carrier that operates in the US (i.e Rogers in Canada)

    Now that be something. Rogers + T-Mobile would mean no more roaming charges for T-Mobile users coming to Canada and vice versa.

    • Daniel FriesenGuest 4 years ago

      If a Canadian company could buy T-Mobile I would rather see Wind Mobile buy T-Mobile over one of the Big-3. Wind and T-Mobile both make use of the AWS band and hence have phones that are made to work on that, in fact if you drop into a Wind Mobile store besides the phones that Wind sells you might see a boxed up T-Mobile phone ready for sale.
      Having a tie to a company in the US pulling in new phones, and at that phones which should already work on Wind would be nice (Wind is slow on the uptake there). Similar advantages for roaming there too, though I suppose the US side might not be as happy since Wind’s network is still growing. Though being a Canada+US carrier might give the company more resources to expand faster, and encourage Wind to expand the network’s towers closer to the border.

  10. sbanickiGuest 4 years ago

    If it is allowed to fail, at least the customers will be dispersed among the remaining three providers. It is not our job to help T-Mobile find a buyer at the expense of the market. http://freeourfreemarket.org

  11. So if Google where to buy T-Mobile… possible names… T-Google…Google Mobile?

  12. RaptorGuest 4 years ago

    Tell us about benefits for customers, T-Mo.
    Run your business and compete.

    When prices will drop to $20/mo for ulimited everything then you will have to merge

  13. A Cablevision purchase would make a lot of sense.

  14. One on the small VNO phone carriers or a group of them. No more paying for someone’s network when they can pool together and own the network. With their numbers they will still be 4th.

  15. Come on Google, make our dreams come true.

  16. Eludium Q36Guest 4 years ago

    I don’t think the track record for beating the DoJ in these matters is encouraging for ATT/DT. They just don’t want to pay Billions to T-Mo for the Failed Deal fee. However, all the usual suspects could buy T-Mo: Google, Microsoft, and Apple and toss Amazon in there too.

  17. Why doesn’t Tmobile use the 3 bil from ATT to buy back their stock from Deutch Telecom? Sure, it would take more money than that, but if ATT can raise the capital, Tmobile should be able to do the same.

  18. cb2000aGuest 4 years ago

    Maybe Nabisco? They could offer phone discounts in cracker boxes or possibly Ford so they could have their own type of On Star system or maybe Microsoft so they could have somewhere to sell Windows phones.

  19. IrisGuest 4 years ago

    What robust competition? They’re all in lockstep in pricing. Are they confusing the resellers with the actual carriers? And this creates one GSM carrier.

  20. GOOGLE. bottom line, first choice, best choice. i would get behind a “g-mobile”. at least it would guarantee a G3 when my contract is up with my G2

    13 months to a new phone…..blah

  21. i personally hope Google buys both HULU and T-Mobile…

  22. how bout all the 100M+ android users chip in $300 then we would have over $30B to over to buy tmobile :D we could all own a % of a carrier and make it the best ever lol

  23. bpearGuest 4 years ago

    How bout all the 100M+ android users chip in $300 then we would have $30B+ and we could all own a % of a carrier and make it the best :)

  24. If Google buys T-mobile then they would be vertically integrated:
    Android OS –> Motorola Phone –> T-mobile wireless service.

    I could only dream of the possibilities…

  25. google, Google, GOOOOGLE!!