T-Mobile warns of consolidation harm

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Despite recent claims by company management that it expected its T-Mobile USA wireless subsidiary would benefit from industry consolidation, Deutsche Telekom AG noted in its 2003 annual report that its U.S. wireless subsidiary could be harmed by consolidation in the market if it does not participate. Analysts have noted that if Cingular’s acquisition of AWS is completed later this year, T-Mobile USA could be left vulnerable as it relies on Cingular’s network in California and Nevada in exchange for Cingular using T-Mobile USA’s network in New York, which Cingular would no longer need due to AWS’ New York network.