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How Even a Failed AT&T/T-Mobile Deal Hurts Rivals
An anonymous reader writes "The attempted merger between AT&T and T-Mobile has fallen on hard times amid antitrust concerns, but there's a potential silver lining for T-Mobile — one that would give them a boost over competitors anyway. Reuters reports that T-Mobile USA would be entitled to a hefty breakup fee including $3 billion in cash as well as spectrum and roaming agreements. 'In a research note, Moody's said that could also lead to a network sharing deal between the two companies, reasoning that it "would make sense given the spectrum that AT&T will have to cede to T-Mobile and the 3G roaming agreement between the two." That would make life especially hard for No. 3 U.S. carrier Sprint, which has been one of the most vocal opponents of the AT&T/T-Mobile deal, going so far as to file a lawsuit. ... Smaller rivals such as MetroPCS and Leap Wireless may be affected even more because T-Mobile is eyeing similar customer segments.'"
All that's well and good, but it doesn't change the fact that Deutsche Telekom doesn't want T-Mobile USA. They don't want to run it and are putting the bare minimum into it to keep it going. Since the deal fell through, that means that basically Deutsche Telekom can't sell T-Mobile USA to any of the larger companies (I doubt Sprint would get approval either since it's one of the top 3 companies).
That means that either Deutsche Telekom will try to sell T-Mobile to one of the smaller companies for less than they would have gotten or Deutsche Telekom will simply break up the assets of T-Mobile and sell them off in bits and pieces. The spectrum T-Mobile already has plus what they'll get from AT&T is pretty valuable. Actually AT&T could end up buying all of T-Mobile's assets, leaving just the company and it's customers behind. That could end up being worse for T-Mobile customers than an all out buy out.