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Deutsche Telekom Lowers T-Mobile’s 2009 Expectations

04/22/2009

While there is reason for cautious optimism with the release of AT&T’s first quarter earnings today, another phone giant’s forecast isn’t so great.

T-Mobile USA’s parent, Deutsche Telekom, says sales are lower than expected, so it’s lowering its earnings expectations for 2009. The company now believes earnings will drop between 2 and 4 percent from 2008.

Some analysts say in addition to the poor economy, competition from low-cost operators is to blame. T-Mobile and other companies are having trouble competing with Sprint’s prepaid unit, Boost Mobile, which unleashed a $50 per month unlimited calling plan earlier this year.


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