Enterprise companies tackle mobile marketing automation slightly differently—and that's why they're on top. Register today for this free VB Insight webinar
with AEG's VP of Social and Marketing on May 28th
T-Mobile is acting tough with its edgy new marketing campaigns, but the fourth-place U.S. wireless carrier is still in a vulnerable position after its acquisition by AT&T fell apart, and it’s losing subscribers like crazy.
So what is T-Mobile’s parent company, Deutsche Telekom, to do? Apparently, it’s considering merging T-Mobile with MetroPCS, America’s fifth-largest carrier, according to a Bloomberg report.
The deal would potentially be a stock-swap transaction, sources tell Bloomberg, that would leave Deutsche Telekom in charge of the combined company. But it seems other options are on the table for T-Mobile, including an IPO or sale of T-Mobile as it is, the sources said.
Not surprisingly, neither T-Mobile nor Deutsche Telekom are commenting on the news.
Deutsche Telekom is announcing its quarterly earnings tomorrow, and it’s projected to report a loss of 470,000 T-Mobile subscribers. That’s on top of a steady drop in subscribers over the last several quarters. After its last earnings report in February, T-Mobile announced a $4 billion “Challenger Strategy” to roll out LTE in 2013 — which seemed too little, too late for the struggling carrier.
DT would have an easier time passing a merger between T-Mobile and MetroPCS past U.S. regulators, who surprised industry watchers by squashing the $39 billion AT&T deal. As the fourth and fifth-place U.S. wireless carriers, a merger wouldn’t have the monopoly concerns that the AT&T deal did (which would have made AT&T the largest carrier in the U.S.).