Two months ago, Deutsche Telekom AG ’s head of the U.S. told investors in New York that its wireless unit there was “ready to turn the business around” with the “best” fast Internet network to win back customers. Yesterday, it decided to sell instead.
T-Mobile USA Inc., the fourth- largest U.S. wireless carrier, named John Legere as chief executive officer, turning to a phone-industry veteran to reinvigorate growth and challenge Verizon Wireless and AT&T Inc.
AT&T Inc. beat out Sprint Nextel Corp. with a $39 billion offer for T-Mobile USA after agreeing to pay mostly cash and a higher-than-average breakup fee, said three people with knowledge of the matter.
Deutsche Telekom AG’s T-Mobile USA agreed to sell the rights to operate 7,200 cellular towers to Crown Castle International Corp. for $2.4 billion, providing cash to invest in the carrier’s U.S. wireless network.
As Deutsche Telekom AG Chief Executive Officer Rene Obermann strives to return the company’s European business to growth, the U.S. wireless unit he agreed to sell to AT&T Inc. for $39 billion is being left behind.
T-Mobile USA Inc., the Deutsche Telekom AG division that agreed to a merger with MetroPCS Communications Inc. in October, named a new board for the combined company, with Timotheus Hoettges serving as chairman.