T-Mobile US Inc (NYSE:TMUS) CEO John Legere was the highlight of the European parent company, Detusche Telekom’s CEO Tim Hoettges.
Hoettges, in an exclusive interview appreciated the aggressiveness that Legere brought to the competitive US telecom carrier market. However, for T-Mobile US Inc the profits appear to be afar as top two US telecom players AT&T and Verizon continue to garner higher spectrum in the recent mid-band auctions, he remarked. He also drew attention to the fact that these two players dominate the market by virtue of their higher wealth as well as the depth of the spectrum, diminishing smaller sized players.
He added that it continued to worry him that both of these big players have large-sized bids in the mid-band spectrum.
Hoettges says T-Mobile US Inc has done well
T-Mobile US Inc has thus far managed to sustain growth despite the hardships because of its tenacity in aggressive pricing and disruptive policies thus far. However, Hoettges stated that for future growth and sustainability the requirement is anywhere between $4 billion to $ billion every year. That would be a tough challenge in the future, as the bigger players continues to dominate and infuse higher bids to eat-up the mid-level spectrum bandwidth as well, he stated.
Hoettges also commented on the scuttling of talks between T-Mobile US Inc and the smallest of the domestic telecom player Sprint. He remarked that, if the deal had been effective, it would have been a combination which could have been the ‘super-maverick’ in the networking industry he stated.
However, the likelihood that industry regulatory body would not endorse monopolistic growth of big players had finally let to the decision not to close deals with Sprint, he stated.
Therefore, in the next couple of years, it is critical for the company to grow in terms which would lead to economic profitability, he concluded!