Tough choices at Deutsche Telekom

Telecoms company Deutsche Telekom may be forced into a tie-up of its US wireless unit with Sprint Nextel after a $39bn deal with AT&T collapsed. AT&T said on Monday it had dropped its bid for T-Mobile USA, bowing to regulatory opposition and leaving both companies scrambling for alternatives. T-Mobile USA “is just crying out for a merger with Sprint. That’s the only long-term solution,” one analyst said. Chief executive Rene Obermann gave no plan of how the company will come back from the collapse of talks with AT&T, assuring investors he was working on a long-term plan.