Deutsche Telekom to Acquire VoiceStream Wireless

  • Written By: P. Hayes
  • Published: August 22 2000

Deutsche Telekom to Acquire VoiceStream Wireless
P. Hayes - August 22, 2000

Event Summary

FRANKFURT, Germany (AP) - Deutsche Telekom has agreed to pay $50.7 billion for VoiceStream Wireless Corp., giving Europe's biggest telecom company its first foothold in the United States.

Market Impact

We expect that the deal will face a good deal of static interference from the US government, as the German Government has a majority ownership of Deutsche Telekom. However, Deutsche Telekom will offer GSM, which is the Global Communications standard for wireless communications, allowing the US wireless digital market to expand at a rapid pace.

VoiceStream, pending government and security approval, will receive 50.7 billion (USD). If the arrangement passes political scrutiny, the advancement of wireless digital communication within the United States will be rapidly advanced (Probability 30%). Both the European and Asian digital wireless markets are approximately 12 - 18 months ahead of the United States in terms of technological development.

User Recommendations

Due to national security concerns we do not believe this foreign acquisition will be allowed to close. On the off chance that the government approves the acquisition, we can look forward to a rapid advancement in wireless digital communications, rivaling functionality found presently in European Markets. The US wireless market could expect to see faster deployment of WAP phones coupled with faster deployment of WAP (Wireless Access Protocol) based applications.

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