Deutsche Telekom's quest to shed itself of T-Mobile US is on ice for now due to the Federal Communication Commission's radio frequency auction later this month and the upcoming elections in the United States.
According to two sources in a Reuters story on Tuesday, Deutsche Telekom AG (NYSE: DT) is hoping for a more favorable political environment after the upcoming elections are completed.
Deutsche Telekom's previous attempts to sell its 65% stake in T-Mobile to AT&T Inc. (NYSE: T) and Sprint Corp. (NYSE: S) were scuttled, but Deutsche Telekom's CEO Timotheus Höttges has previously said he's not in a hurry to make a deal. (See T-Mobile US Sale Fits DT's All-IP Game Plan.)
Participants in the FCC's auction, which could include T-Mobile, aren't allowed to engage in partnership or merger activities during the low-frequency auctions. The auctions could take months to complete.
T-Mobile US Inc. CEO John Legere has previously said he was keen on acquiring more low-band spectrum. (See T-Mobile CEO: We'll be a 600MHz Auction Winner.)
— Mike Robuck, editor, Telco Transformation