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A new mobile phone "Optimus 3D" by LG is displayed at the Mobile World congress in Barcelona, Spain, Monday, Feb. 14, 2011.
A new mobile phone "Optimus 3D" by LG is displayed at the Mobile World congress in Barcelona, Spain, Monday, Feb. 14, 2011.
(Manu Fernandez/AP)

FINANCIAL TIMES

T-Mobile USA’s strategy surprises to the upside

Lex is a premium daily commentary service from the Financial Times. It helps readers make better investment decisions by highlighting key emerging risks and opportunities.

“Greedy hedge funds” as T-Mobile USA boss John Legere gratuitously labelled them this year. Deutsche Telekom had an agreement to merge its laggard U.S. unit with MetroPCS. But that group of dissident MetroPCS shareholders wrangled DT into lifting its offer in exchange for their approval. And after announcing a surprisingly strong quarter from the combined T-Mobile/MetroPCS on Thursday, where the company added about 700,000 subscribers, it looks like paying that ransom to clinch the deal was wise.