Deutsche Telekom AG (NYSE: DT) (FSE: DTE) today welcomed the U.S. Federal Communications Commission's (FCC) approval of the proposed mergers between Deutsche Telekom and VoiceStream Wireless Corporation (Nasdaq: VSTR) and Deutsche Telekom and Powertel, Inc. (Nasdaq: PTEL) and its grant of the parties' applications for the transfer of control of FCC licenses. Deutsche Telekom AG (NYSE: DT) (FSE: DTE) today welcomed the U.S. Federal Communications Commission's (FCC) approval of the proposed mergers between Deutsche Telekom and VoiceStream Wireless Corporation (Nasdaq: VSTR) and Deutsche Telekom and Powertel, Inc. (Nasdaq: PTEL) and its grant of the parties- applications for the transfer of control of FCC licenses.
In its press release, the FCC stated that -U.S. consumers will benefit from the effects of the proposed merger, which will include the build-out and extension of VoiceStream's network - significantly expanding VoiceStream's national and international reach. U.S. consumers also will benefit from the resulting increase in competition in mobile services, including new communications services and new features."
"We are pleased that the FCC, after careful and in-depth examination, has approved the VoiceStream and Powertel mergers with Deutsche Telekom," said Dr. Ron Sommer, Chief Executive Officer of Deutsche Telekom. "Today's approval by the FCC represents the completion of an important milestone and supports our view that the combination of our three companies will deliver significant benefits to customers."
Deutsche Telekom and Voicestream will be subject to the standard conditions that already apply to Deutsche Telekoms's U.S. international license and to the usual conditions negotiated with the U.S. Department of Justice and Federal Bureau of Investigation concerning law enforcement assistance matters.
The mergers are under review by the Committee on Foreign Investment in the United States (CFIUS). Upon receipt of this final approval, the companies expect to complete the transactions at the end of May 2001.
As the first and only true transatlantic provider of mobile services based on the world's leading digital standard - GSM - the combined company will be able to offer seamless services over a common technology platform and provide customers with such advanced features as global "one phone-one number" roaming, unified billing, worldwide customer service and advanced high-speed, "always-on" GPRS wireless data. Together with VoiceStream and Powertel, Deutsche Telekom, and its subsidiaries and associated companies, will cover a license area of more than 430 million people in the United States and Europe.
About Deutsche Telekom Deutsche Telekom is Europe's largest communications company and one of the largest communications carriers worldwide based on 2000 revenues of 40.9 billion euros ($38.6 billion). Through T-Mobile , Deutsche Telekom's mobile telephony subsidiary, Deutsche Telekom serves more than 45 million mobile telephony customers worldwide. Deutsche Telekom offers its customers a complete range of fixed-line voice telephony products and services through more than 50 million access lines. Deutsche Telekom is a leading provider of high-speed digital access lines with approximately 850,000 new asymmetric digital subscriber line (T-DSL) services currently sold and 17.3 million channels using the information transfer standard ISDN (Integrated Services Digital Network) as of December 31, 2000. In online services, T-Online is Europe's largest Internet provider with approximately 8.5 million subscribers. In January 2001, Deutsche Telekom launched T-Systems , Europe's second-largest provider of comprehensive IT and telecommunications services to business customers in more than 20 countries. For more information about Deutsche Telekom, visit http://www.telekom.de/international
About VoiceStream Wireless
Based in Bellevue, WA, VoiceStream Wireless Corp. (NASDAQ:VSTR) is a leading provider of digital wireless communications in the United States. VoiceStream has experienced significant growth over the past year, entering into a series of strategic business transactions that will allow VoiceStream and its affiliates to provide service to more than 270 million people, representing 97% of the U.S. population. VoiceStream uses and operates the Global System for Mobile (GSM) communications technology platform. Adopted by 158 countries, GSM accounts for approximately 70 percent of the total digital wireless market. VoiceStream is the only U.S. wireless telecommunications provider with a national GSM wireless technology network, which gives customers the choice of using their VoiceStream number when traveling internationally and supports roaming capabilities for other GSM customers traveling to the United States. For more information, go to http://www.voicestream.com
About Powertel Powertel, Inc. provides 100 percent digital PCS wireless services in its licensed service area in 12 states in the Southeast - one of the largest contiguous PCS networks in the southeastern United States. Through its affiliation with other GSM carriers, Powertel's coverage extends across the United States to most major cities and into much of Canada to a population of more than 260 million people. Powertel's core markets are in 34 southeastern metropolitan areas and along the major highway corridors that connect them. Athens, Atlanta, Augusta, Columbus, Birmingham, Chattanooga, Jackson, Jacksonville, Knoxville, Lexington, Louisville, Macon, Memphis, Nashville and Savannah are among the municipalities in Powertel's licensed service area, which has a population of more than 25 million people. For more information on Powertel and its products and services, visit the company on its web site at: http://www.powertel.com
This press release contains certain statements that are neither reported financial results nor other historical information. These statements are forward-looking statements within the meaning of the safe harbor provisions of the U.S. federal securities laws. Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors that are beyond Deutsche Telekom's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of governmental regulators and other risk factors detailed in Deutsche Telekom's reports filed with the Securities and Exchange Commission (the 'Commission'). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Deutsche Telekom does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release.