Deutsche Telekom weighs up UK, Dutch options - Mobile World Live

Deutsche Telekom weighs up UK, Dutch options

17 APR 2012

Deutsche Telekom could sell its stakes in its operations in the UK and the Netherlands next year, according to Financial Times Deutschland sources, after local management had been given time to improve results.

The sources say Deutsche Telekom had considered selling up in these two markets previously but will do so again in 2013 once it has reviewed the performance of its European units at an annual strategic meeting of management due to take place in the summer.

Deutsche Telekom owns 50 percent of Everything Everywhere, the UK joint venture with France Telecom using the T-Mobile and Orange brands, and runs the T-Mobile network in the Netherlands.

Deutsche Telekom is looking to preserve its dividend and re-invest in the US following the collapse of the proposed US$39 billion deal for AT&T to acquire T-Mobile USA. It was reported in February that the German company was considering an exit from the UK market.

Bloomberg said at the time that possible scenarios could include France Telecom buying its stake in Everything Everywhere, or a transaction involving a third party – such as a private equity consortium or another operator.

In February, Deutsche Telekom said it would increase network investment for T-Mobile USA by US$1.4 billion over the next two years, with the US division spending a total of US$4 billion to upgrade its network to include LTE.

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Tim Ferguson

Tim joined Mobile World Live in August 2011 and works across all channels, with a particular focus on apps. He came to the GSMA with five years of tech journalism experience, having started his career as a reporter... More

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