Deutsche Telekom Says It Will Build Up T-Mobile USA

In quite a reversal from the rumors it was thinking of selling its US T-Mobile unit, Deutsche Telekom execs now say they’re looking to boost the carrier by buying spectrum and launching 3G (which, of course, we already knew), but also by buying smaller regional operators. Plenty of consolidation has already played out in the US mobile industry, and those small carriers are all that’s left — but will buying up customers, and more importantly, spectrum, in small and rural markets really help T-Mobile that much? While it doesn’t have the coverage footprint of some of its national rivals, T-Mobile’s biggest problem is a shortage of spectrum in big markets. That’s where it needs a boost, not in rural areas.

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