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Deutsche Telekom ( DTEGY ) has shelved plans to put T-Mobile US ( TMUS ) up for sale, pending the outcome of a wireless spectrum auction and the U.S. presidential election, a Reuters report said Tuesday, citing unnamed sources. Deutsche Telekom, which owns two-thirds of T-Mobile, is also in no rush to seek a merger because T-Mobile has been gaining market share vs. AT&T ( T ), Verizon Communications ( VZ ) and struggling Sprint ( S ). The Obama administration’s Department of Justice signaled its opposition to a T-Mobile-Sprint merger in 2014, fearing less competition in the wireless services sector. Some observers speculate cable TV firm Comcast ( CMCSA ) could acquire T-Mobile. And satellite broadcaster Dish Network ( DISH ) has also been looking for a wireless network partner. Federal regulators appear set to go forward this spring with the much-anticipated auction of airwaves now owned by local TV broadcasters. The Federal Communications Commission plans to begin the “Broadcast Incentive Auction” on March 29. The auction, which could last five to six months, will free up an estimated 60 to 80 megahertz of prime, low-frequency radio spectrum for wireless services. In connection with the auction, the FCC will impose a quiet period that bans negotiations over spectrum and other matters. “During that period, there will be no M&A activity in the U.S. telecoms sector,” a source close to Deutsche Telekom told Reuters . T-Mobile has said it could spend up to $10 billion in the auction, with Verizon and AT&T among the other expected bidders. Comcast, too, is seen as likely to bid. If Comcast buys a large amount of spectrum in the auction and thus becomes another major provider of wireless services, that could be a precursor to a wireless acquisition that regulators would likely view favorably, analysts say. Scalper1 News
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