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Deutsche Telekom: No Plans Yet For T-Mobile USA IPO

littlefuzzbear

Sep 27, 2005, 12:29 AM
German telecommunications operator Deutsche Telekom AG (DT) has no plans for an initial public offering for its U.S. wireless unit T-Mobile USA now, Chief Executive Kai Uwe Ricke said at an investor conference Thursday.

"I would not rule it out forever - you cannot rule out anything forever, but right now, why should we do that?" Ricke said at the Goldman Sachs Group Inc. (GS) Communacopia conference in New York. His comments were broadcast on Deutsche Telekom's Web site.

"Right now, it's not our path to go for an IPO of T-Mobile USA," Ricke said.

Ricke said Deutsche Telekom doesn't need to sell shares to finance growth in the U.S., and he said there's no need to list shares to highlight the value of the business to investors and fi...
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nextel18

Sep 27, 2005, 8:34 AM
question for others.... they need the $10+ billion for upgrades for 3g in the tmobile usa unit and they dont have money and this analyst says that it can dilute their growth opportunities? that doesnt make sense. an ipo basically lets you raise the money that you dont have. since DT doesnt have the money for tmobile usa to upgrade this way, to do an ipo, is a great thing becuase with the $10+ billion that they would spend on tmobile usa they can spend it on other opportunities.

thoughts?
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T-jim

Sep 27, 2005, 9:01 AM
Ricke said Deutsche Telekom doesn't need to sell shares to finance growth in the U.S., and he said there's no need to list shares to highlight the value of the business to investors and financial analysts.

I think its obvious that they do have the capital to finance this upgrade. Their experience in Europe
upgrading from 2.5g to true 3g gives them managerial and logistic wisdom to not only buy the spectrum but to upgrade their base stations at costs that might be lower than expected. Technology usually gets cheaper and better over time.
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nextel18

Sep 27, 2005, 9:15 AM
"Ricke said Deutsche Telekom doesn't need to sell shares to finance growth in the U.S., and he said there's no need to list shares to highlight the value of the business to investors and financial analysts."

lol you dont have to repeat what he said. lol. or else i wouldnt have asked the question.... he also said that it can dilute their growth opportunities if they would do an ipo which is obviously not true.

" I think its obvious that they do have the capital to finance this upgrade"

do you say this out of a factual statement or what? any evidence to prove this statement? their tmobile usa debt unit has been increasing YoY.

also this is an interesting article.. http://www.betanews.com/article/No_TMobile_US _Sale_3G_in_2007/1127...
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guitarman21

Sep 27, 2005, 1:54 PM
It's cheaper to finance using debt, and doing this isn't necessarily a bad thing.
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guitarman21

Sep 27, 2005, 2:03 PM
Just to clarify, it can be cheaper to finance using debt, depending on the circumstances.
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nextel18

Sep 27, 2005, 2:09 PM
so if you were tmobile usa and DT what would you do?
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guitarman21

Sep 28, 2005, 11:37 AM
I would have to look at the debt/equity structure of the company. Maybe they figure that the IPO would only be $10 or $15 and at this time, it is not worth it.
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nextel18

Sep 28, 2005, 10:24 PM
well if they would get 10-20 billion dollars on the IPO then that would help with their upgrades.
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nextel18

Sep 27, 2005, 2:09 PM
yea that is true.... but not when your in a saturated market with only 20 million customers and last in a data network and coverage. â˜šī¸
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Rathrok

Sep 27, 2005, 2:44 PM
Where is this saturated market that you speak of? The U.S.?? Any stats to back that up?
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nextel18

Sep 27, 2005, 3:24 PM
sure.

http://www.idc.com/getdoc.jsp?containerId=prUS00125505 »

"While this trend is expected to continue through 2005, it is inevitable that there will be an eventual slowdown as subscriber penetration surpasses 75% of the U.S. population, leading to heightened competition brought on by the absence of first-time subscriber opportunities."

http://www.w2forum.com/item/us_wireless_market_reach ... »


"IDC has come up with a new report on U.S wireless industry. Here are some of its key findings Key statistics More than 75% of U.S population are wireless subscribers U.S consumer wireless ARPU at $48 and business wireless APRU at $74 in 2009 respectively Concerns U.S wireless market to.."

(you have to be a member...
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Rathrok

Sep 28, 2005, 11:54 AM
Where do expect them to spend the money if it is not spent in the U.S. A Wireless Weekly that came out oh, 6 months ago I think. I wish I still had it to quote it directly, showed even worse saturation numbers in Europe. The first time adds over there were horrible. It made the adds that the US companies post each quarter look like christmas.
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nextel18

Sep 28, 2005, 10:24 PM
perhaps in their core businesses or perhaps venture out into a new markets such as deeper into china, japan, or even india. ( stop mentioning europe that was just an example)
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Rathrok

Sep 30, 2005, 9:39 AM
You're the one mentioning "saturated markets". When there own home market is worse than the U.S.

There is a bright business decision, build a whole new network in another country from the ground up, rather than expand and upgrade the US market.

Please go back to your kiosk. You seemingly can only quote articles, and spit out the same useless drivel over and over.
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nextel18

Sep 30, 2005, 9:55 AM
lol... the kiosk statement again? how pathetic.

i have been saying to stop saying about their home market.... i have been saying go to another market like india or china or japan instead of the united states market and spending billions of dollars upgrading when they dont have a chance against the other carriers.

(as i mentioned before... stop mentioning their home market..)
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Rathrok

Sep 30, 2005, 10:20 AM
Reality is pathetic sometimes I guess. As I mentioned before...back to the kiosk.

Makes perfect sense! Why spend billioins to upgrade your current network where you ARE growing. When you can go to a new market and build a whole new network spending billions more than what you would spend upgrading the existing one.

Sorry, I gave you too much credit when I mentioned the kiosk. Get back to manning the slurpy machine at the 7-11!
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nextel18

Sep 30, 2005, 10:36 AM
too bad i dont work at a kiosk and too bad that you are a poser and copies others.

growing in a saturated market? lol funny.

by the way, they have to wait at least till 06 to get the 3g spectrum then it takes 1-2 years to deploy it.. so in late 07 early 08 they will finally have that technology on their networks while others are working on other technologies in the 4g sector.

when you enter a new market you dont have to spend billions on a new network... you can partner up with someone like a joint venture or something of that sort. in addition, if you target china, india or japan, they are huge markets to target especially india or china.

united states is almost saturated and since arpu is going down, data arpu is crucial in t...
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Bigern_McCracken

Sep 27, 2005, 6:24 PM
Well, In my years in this industry, I have learned that anyone other than the people with the expensive pen and taylored suit (exec's) have not a positive 100% knowledge of where the company is going to go. I mean, If it were me, I guess if we had the means to do so, I would jump the ship to 3G. It obviously has more capability than 2.5 (which of course you already know) I guess in a nutshell, what I think is that if the exec's of DT feel like they don't need an IPO to make that leap then I say they probably have info that none of us do. It makes sense to do an IPO yes, but, there is so many other factors and elements to the equation that we really couldn't make an honest, educated, 100% fact statement about the subject. A good topic none th...
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nextel18

Sep 28, 2005, 10:29 PM
yea that is true, but i like to talk about this stuff to make us think if we were in those guys shoes what would we do.

thanks. 🙂
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terryjohnson16

Sep 27, 2005, 10:05 AM
Please do not start a debate war again!
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