VoiceStream finally becomes T-Mobile US, but is now such a good time?

July 22, 2002

1 Min Read
T-Mobile Is Go

VoiceStream Wireless Corp. has finally made its name change to T-Mobile U.S. official, bringing the operator in line with the rest of Deutsche Telekom AG's (NYSE: DT) mobile subsidiaries.

T-Mobile U.S. unveiled the change as part of its launch in Nevada and California. As part of the rebranding, filmstar Catherine Zeta Jones has signed on as the new "face" of T-Mobile.

We at Unstrung wonder if re-branding at this time is such a good idea. DT has steadily renamed all of its wireless units as T-Mobile, because of its grand strategy to become the only worldwide GSM/GPRS operator. But are closer links with the parent company such a good thing for VoiceStream at the moment?

After all, the mercurial ex-CEO of Deutsche Telekom, Ron Sommer, was responsible for the worldwide mobile strategy and the purchase of VoiceStream, building up €67 billion ($67 billion) in debt in the process. Sommer stepped down last week, under pressure from the German government (see Bonn Says Ron's Gone), and the suggestion is that VoiceStream could be sold for far less than the $31 billion that DT paid for it in 1999 (see AT&T/VoiceStream Rumors Rife).

Surely, less -- not more -- association with DT is what's needed at the moment?

— Dan Jones, Senior Editor, Unstrung
http://www.unstrung.com

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