Deutsche Telekom to merge U.S. ops with MetroPCS
FRANKFURT Oct 3 (Reuters) - Deutsche Telekom and MetroPCS agreed to merge their operations in the United States, leading to an impairment charge of at least 7 billion euros ($9 billion) for Telekom in a move that might allow the company to exit the U.S. wireless market.
Deutsche Telekom will hold 74 percent and MetroPCS 26 percent in the combined entity, Deutsche Telekom said in a statement on Wednesday, confirming a report from German paper Financial Times Deutschland.
The plan comes less than a year after U.S. antitrust regulators quashed Telekom's plan to sell T-Mobile USA, the fourth-largest U.S. mobile service provider, to AT&T Inc, the second-largest, for $39 billion.
Once Telekom's strongest growth engine, T-Mobile USA has been losing customers to bigger and smaller rivals in recent years, partly because it is not authorized to sell the Apple iPhone.