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.