T-Mobile buys US wireless network

25th May 2004, Comments 0 comments

25 May 2004 , BONN - T-Mobile, the mobile phone unit of Deutsche Telekom, said Tuesday it had acquired the mobile phone network of US company Cingular Wireless in the western states of California and Nevada. T-Mobile put the price of the transaction at USD 2.5 billion (EUR2.07 billion). At the same time, a Cingular-T-Mobile joint venture was to be dissolved, with T-Mobile to receive USD 200 million, reducing the overall purchase price to USD 2.3 billion. The transaction is due to be completed by early 2005

25 May 2004

BONN - T-Mobile, the mobile phone unit of Deutsche Telekom, said Tuesday it had acquired the mobile phone network of US company Cingular Wireless in the western states of California and Nevada.

T-Mobile put the price of the transaction at USD 2.5 billion (EUR2.07 billion). At the same time, a Cingular-T-Mobile joint venture was to be dissolved, with T-Mobile to receive USD 200 million, reducing the overall purchase price to USD 2.3 billion.

The transaction is due to be completed by early 2005. Under terms of the agreement, Cingular is to purchase network capacities for at least USD 1.2 billion from T-Mobile over the next four years.

Till now, T-Mobile and Cingular Wirelesss had cooperated in operating their mobile phone business in the states of New York, Nevada and California. Under the new arrangement, T-Mobile will gain full control over the New York network.

The deal follows on the heels of the acquisition of a major competitor, AT&T Wireless by Cingular.

Deutsche Telekom, T-Mobile's parent company, said it expects a clear boost to business from the purchase of the mobile phone networks in Nevada and California. By the end of the year, T-Mobile expects to have over 16 million subscribers in the United States.

In ten years' time, the number of US subscribers is expected to reach 30 to 35 million, well above Telekom's previous projection of around 25 million.

DPA

Subject: German news

0 Comments To This Article