Deutsche Telekom CEO Refuses to Entertain T-Mobile Sale Suggestions

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Deutsche Telekom CEO Refuses to Entertain T-Mobile Sale Suggestions

1:39 am on June 14, 2007 | Category: Business, Telecom Services, Telephone, Wireless, Corporate

Deutsche Telekom’s Chief Executive, Rene Obermann, has dismissed suggestions that T-Mobile USA should be sold off, stating that the American wireless business is crucial to his company’s long-term success strategy.

Obermann said that selling T-Mobile would be “shortsighted” and detrimental to the European telecom giant’s future prospects. When asked if Deutsche Telekom would expand into developing markets, he asserted that countries with weak telecom infrastructure were very low on the priority list.

“We want to be strong first in markets where we are already present,” the CEO explained.

T-Mobile currently boasts around 26 million subscribers in the United States, and aims to add a further 5 million customers by early 2008. The division generated sales of US$4.7 billion in the first quarter and has “profitable growth opportunities,” according to Obermann.