T-Mobile USA announced today that it agreed to acquire SunCom Wireless Holdings for approximately $2.4 billion in cash and assumed debt. T-Mobile will integrate SunCom's network and its more than 1 million customers. The move is intended to enhance T-Mobile USA's network in the southeastern United States - including North Carolina, South Carolina, and Tennessee and Georgia - in addition to Puerto Rico and the U.S. Virgin Islands. T-Mobile USA also expects to realize significant cost saving synergies through reduced roaming and operating expenses.
"With the acquisition of SunCom, we will continue to implement our strategy to 'grow abroad with mobile', which is part of our overall group strategy," said René Obermann, chairman of the Board of Management of Deutsche Telekom, in a company statement.
Robert Dotson, president and CEO of T-Mobile USA, said in a statement, "The strategic fit of the SunCom operations will make this a near-perfect acquisition. It will round out our domestic footprint, allowing us to serve 98 of the top 100 markets, and will significantly benefit our financial position by reducing roaming expense."
With the current economic climate, wireless operators face shrinking marketing budgets and reduced consumer spending.
Globally, the credit crunch is very much alive, and operators will be tightening their belts into the foreseeable future by putting off capital purchases.
