Article Abstract:
German-based telecommunications services company Deutsche Telekom AG has suspended merger talks with Qwest Communications International. Deutsche Telekom has been scared-off by Qwest's plans to buy U S West Inc. Deutsche Telekom has been trying to expand into new markets and will probably now look into a possible acquisition of Global Crossing Ltd.
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German telecommunications services company Deutsche Telekom AG will pay $50.7 billion dollars for American cellular communications concern VoiceStream Wireless Corp. VoiceStream, although not yet profitable, has the potential to reach 70 percent of the American population with its network's geographic scope. Deutsche Telekom has been in the market for a US company for a long time. If the merger should fall through, Deutsche Telekom has promised VoiceStream a cash investment of $5 billion.
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With the investment help of Microsoft Corp., Comcast Corp. will acquire AT and T Broadband from AT and T Corp. for $20 billion in debt and $47 billion in stock. Comcast Pres. Brian Roberts and AT and T CEO C. Michael Armstrong worked out the deal that creates the largest cable TV operator in the US with 22 million subscribers. The only close competitor in subscription TV service will be a merger of EchoStar with DirecTV. That combination, if approved, will have 17 million subscribers. AOL Time Warner and Cox Communications were left out in the cold but will generate deals with AT&T Comcast to gain subscriber access.
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