Looking to expand their coverage nationally, and reduce roaming charges, T-Mobile has entered into an agreement to purchase SunCom for $1.6B and assume $800M of debt. Instead of just picking up SunCom’s 1.1M customers, T-Mobile will have increased its network coverae by “15 million potential users to 259 million in 98 of the U.S.’s 100 most important regional markets.” While this aquisition won’t officially go down until the second quarter of ’08, I’m sure we’ll be hearing more about it soon. Hey, as long as it improves your coverage, we’re all for it T-Mobz! Check out the email from Robert Dotson, CEO of T-Mobile after the jump!
At our core, T-Mobile will always be a growth company. We do that chiefly by focusing on the wants and needs of our customers and then offering superb products and services, all combined with an outstanding calling experience and award-winning customer service. By focusing on what we do best, we’re well positioned to win new customers and ensure existing customers stay with us for years to come.
But sometimes, growing also means identifying other quality wireless companies that would make sound additions to the T-Mobile family. Such an opportunity has presented itself today.
I am pleased to announce T-Mobile and SunCom Wireless have entered into a definitive merger agreement. SunCom currently serves more than one million customers in North Carolina, South Carolina, Tennessee, Georgia, Puerto Rico and the U.S. Virgin Islands. The company operates on a GSM network and has provided roaming service to T-Mobile in these markets since 2004.
The strategic fit of the SunCom operations is near-perfect. It rounds out our domestic footprint, allowing us to serve 98 of the top 100 markets, and significantly benefits our financial position by reducing roaming expense.
Furthermore, it adds a talented group of employees that will enable us to serve SunCom customers with industry-leading national products and services available under the T-Mobile brand.
Following the close of the transaction, T-Mobile expects to fully integrate SunCom’s network and operations into the T-Mobile network. We’re committed to providing SunCom customers a smooth transition over to T-Mobile’s high-quality, innovative wireless products and services. We’re also excited about delivering SunCom customers new services such as our popular myFaves™ offering; our broad geographic reach on our highly regarded wireless network, and our industry-leading customer service.
Additional details about this particular transaction are included in a press release which is available below.
Completion of the merger is expected to occur in the second quarter 2008 although it will be subject to SunCom stockholders and certain regulatory approvals. In the meantime, I would encourage each of you to help us finish
2007 strong. Execution on our “Big 5 Initiatives” continues to be our top priority.
Before closing, it is important we all thank René Obermann, Chief Executive Officer of Deutsche Telekom along with his leadership team for their continued belief in T-Mobile USA. This merger agreement is another strong indicator of the confidence DT has in the U.S. business and our ability to continue driving profitable growth for the overall company. Frankly, this merger agreement would not have been possible without their support.
This is an exciting time to be here and all of us can take pride in this latest chapter in the T-Mobile story.
CEO & President