T-Mobile Not A Buyer Right Now
As acquisitions and mergers become the norm in the cellular industry, one player is standing pat.
The US based portion of Deutsche Telekom doesn’t see a strategic need to acquire or partner with other cellular providers. At this time, the company sees no pressing need to acquire a smaller regional cellular provider.
T-Mobile currently stands as the fourth largest provider in the United States. Other cellular companies have merged and the number of national providers has fallen.
Cingular acquired AT&T wireless, and Sprint will acquire Nextel Communications. Verizon is the other major provider of cellular service and partners with Vodafone.
T-Mobile feels that enough potential exists for growth in the US market that it does not need to enter into any acquisitions. The company has purchased additional radio frequencies. Its costs to bring in new customers are nearly 30 percent less than those of its competitors.
The company sees its growth at 1 million new customers per quarter for 2005. And in 2007, T-Mobile expects to have 3G services available, though it has not yet begun purchasing the necessary licenses to support third-generation services.
3G services include video messaging and downloadable content, an area cellular providers feel they need in order to bring in desirable younger demographics.
David Utter is a staff writer for WebProNews covering technology and business. Email him here.