Bleak future ahead for T-Mobile if AT&T deal falls through?

 

By Posted 6 Sep 2011, 15:44

Last week you told you about the US governments moves to block the proposed AT&T purchase of T-Mobile in the US. The news won’t be well received by AT&T, but does it mean a bleak future ahead for T-Mobile if the AT&T deal falls through?

Before AT&T decided it wanted to buy T-Mobile the carrier was in a bad financial position according to an article CNN Money. Since it was offered $39 billion of AT&Ts money the carrier has been watching its sales and market share begin to disappear. There are also no network upgrades or major handset launch in the pipeline either.

If the takeover is not approved it don’t bode well for the carrier, as its owners Deutsche Telekom have been looking to get out of the US market for over a year now. The company wants to concentrate on its European operations, and T-Mobile USA has struggled to keep up with its rivals and their 4G networks.

Before AT&T made their move there wasn’t much interest in the carrier from other potential suitors, and if the deal fails to go through there may be even less chance of someone else stepping in. The legal case concerning AT&Ts takeover is expected to take a long time, and won’t help T-Mobiles current problems.

Not having a 4G network could become a major problem a couple of years down the line, but if the deal falls through T-Mobile do get $3 billion in cash plus another $3 billion worth of wireless spectrum. This may not be enough to create a 4G network but it helps all the same.

There are some though who believe that the way the mobile market is someone else may become interested. One such company could be Sprint who was once thought as a possible suitor before AT&T made their bid. But this could prove too costly for Sprint who isn’t exactly sailing along themselves, but if the T-Mobile does become available again it could at least be at a lower price.

What do you think T-Mobile’s future will hold?