T-Mobile buys SunCom

17 Sep 2007

The US cellular operator T-Mobile USA has agreed to pay USD1.6 billion for smaller rival SunCom Wireless. T-Mobile, a subsidiary of Germany’s Deutsche Telekom, will also assume around USD800 million of SunCom’s debt. The deal is expected to close in the first half of next year, Reuters reports. T-Mobile sees synergies from the transaction of around USD1 billion. SunCom has over 1.1 million subscribers in the south-eastern United States, the US Virgin Islands and Puerto Rico, while T-Mobile USA has almost 26.9 million customers nationwide. Deutsche Telekom’s chief executive, Rene Obermann, commented: ‘With the acquisition of SunCom, we will continue to implement our strategy to grow abroad with mobile.’

T-Mobile’s US cellular rivals AT&T and Verizon Wireless have both enlarged their businesses through the acquisition of smaller operators in recent months; AT&T is awaiting regulatory approval for its purchase of Dobson Communications, while Verizon has bought both Rural Cellular and Ramcell.

Puerto Rico, United States, T-Mobile Puerto Rico, T-Mobile US