Deutsche Telekom and T-mobile Essay

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T-Mobile has a 12% market share in the telecommunications industry, making the fourth largest telecommunications company in the U.S. T-Mobile is a holding company for Deutsche Telekom AG, a major German mobile communications conglomerate that owns 67% of T-Mobile in common stock. T-Mobile’s CEO is John Legere, a sparky personality frequently making headlines for his provocative remarks. In the United States, T-Mobile operates under the T-Mobile, MetroPCS, and GoSmart Mobile brands.
T-Mobile competes in the highly saturated and highly concentrated telecommunications industry. The top 50 largest companies in the world generate 90% of revenue. Nonetheless, the industry shows strong prospects of growth, especially in international market, with revenue growth expected to grow by $400 billion by 2019. Financially, T-Mobile has been benefitting from its recent acquisition of a smaller telecommunications rival, MetroPCS. After acquiring MetroPCS in 2013, T-Mobile has seen a $3 billion increase in prepaid service revenues, and a $3 billion rise in equipment sales. T-Mobile is a highly levered firm, as shown by its Total Debt/Equity ratio of 156.30. T-Mobile also has high liquidity, as shown by its 1.59 current ratio. However, T-Mobile’s profitability has been struggling recently, as shown by a 0.84% net profit margin and a 1.65 ROE. As seen in Exhibit xxx significant sources of cash include depreciation & amortization and increases in current liabilities, while significant uses of

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