Breaking up is hard to do: Deutsche Telekom demands USD1bn ‘breakup fee’ ahead of planned Sprint merger

13 May 2014

T-Mobile US’ parent company Deutsche Telekom (DT) has demanded a breakup fee in excess of USD1 billion in the event that the Federal Communications Commission (FCC) decides to block the planned merger between Sprint and T-Mobile. According to the Wall Street Journal, which cites unnamed sources, DT also wants assurances that T-Mobile’s brand and some of its management team will remain in place after a deal.

According to TeleGeography’s GlobalComms Database, as a direct result of AT&T’s failure to complete its proposed USD39 billion takeover of T-Mobile in 2011, the DT-owned carrier benefitted from a so-called ‘break-up fee’ of USD3 billion in cash as well as a large package of AWS mobile spectrum in 128 Cellular Market Areas (CMAs), including twelve of the so-called ‘Top 20’ markets.

United States, Deutsche Telekom, Sprint Corporation (formerly Sprint Nextel), T-Mobile US (inc. MetroPCS), Softbank Corp,

Subscribe

Subscribe to CommsUpdate to get the day’s top telecom headlines delivered to your email.

Subscribe to CommsUpdate

Feedback

Have feedback, corrections, or story ideas? Send them to editors@commsupdate.com.

Browse Past Issues

Filter

Filter CommsUpdate by the following categories or use the search.

Search

Visit our help page information on performing advanced searches, including how to restrict the results by country or company.

Advertise

CommsUpdate is an outstanding advertising venue for companies seeking to reach:

  • International carriers
  • Wholesale service providers
  • Equipment and software vendors
  • Telecom investors
  • Regulators

Learn more about advertising on CommsUpdate.

Share