Deutsche Telekom ceases Iran operations ahead of T-Mobile/Sprint merger

Deutsche Telekom is ceasing its Iran operations to comply with US sanctions and help to ensure its proposed T-Mobile/Sprint merger goes ahead.

The proposed Sprint/T-Mobile merger is one of the biggest things happening in Deutsche Telekom’s business. With tensions between the US and Iran strained, the company has decided to cut off ties with Tehran.

Sanctions against Iran were reimposed earlier this month which means any US company found dealing with the country would not be allowed to do business with US firms. For a company like Deutsche Telekom, the US is a far more important partner.

Deutsche Telekom has a minimal presence in Iran through its Detecon subsidiary. The IT consulting firm conducted around $342,000 of business in Q1 2018 in Iran.

Compared to around $30 billion revenue over the same period from T-Mobile US, it’s little surprise who’s getting priority.

“Given the sensitivity in relations with Iran worldwide, Detecon ended its business in Iran with immediate effect in mid-May 2018,” a spokesman for the company said.

If the merger goes ahead, T-Mobile’s merger with Sprint will create the US’ third largest mobile operator by subscribers. The merged company will be more competitive against the incumbents Verizon and AT&T.

As the 5G rollout begins, Deutsche Telekom will be doing everything in its power to put the company in an advantageous position.

What are your thoughts on Deutsche Telekom’s decision? Let us know in the comments.

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