MetroPCS to Merge with T-Mobile - The UpStream

MetroPCS to Merge with T-Mobile

posted Wednesday Oct 3, 2012 by Nicholas DiMeo

MetroPCS to Merge with T-Mobile

T-Mobile has a weird way of staying in the news, whether it be for good or for bad. Two years ago they started the deceitful trend of lying about 4G networks and it kind of has snowballed from there. They were able to make $4 billion off the failed AT&T merger and while they waited for the spectrum transfer to be approved, closed seven call centers. Now, the company looks ahead in order to save itself from potential implosion and has inked a deal with MetroPCS to merge forces.

The deal will give MetroPCS shareholders $1.5 billion in cold, hard cash and they will also get 26 percent stake in the new company. Deutsche-Telekom, parent company of T-Mobile, will keep hold of the rest of the 74 percent. Depending on how slowly or quickly the FCC and Department of Justice care to move on this, the deal is expected to be finalized by June of next year if no problems should arise. It should be noted that back in February Sprint was rumored to have a lot of interest in buying MetroPCS, but nothing ever came of it.

Rene Obermann, CEO of Deutsche-Telekom, said,

We are extremely pleased to announce this transaction with MetroPCS, which enhances Deutsche Telekom's position in the expanding U.S. wireless market. The T-Mobile and MetroPCS brands are a great strategic fit - both operationally and culturally. The new company will be the value leader in wireless with the scale, spectrum and financial and other resources to expand its geographic coverage, broaden choice among all types of customers and continue to innovate, especially around the next-generation LTE network. We are committed to creating a sustainable and financially viable national challenger in the U.S., and we believe this combination helps us deliver on that commitment.

This is surely an interesting move and will put T-Mobile back in contention with the bigger guys like AT&T and Verizon Wireless, and MetroPCS actually has a few of their own 4G LTE light towers. So, while T-Mobile works until the middle of next year to roll out their first 4G tower ever, they will merge into a company who's already established an LTE footprint in several markets. In the end, it is a win for T-Mobile and by 2014 they will no longer have to lie to their customers unless they'd like to say that the merger allows them to have the nation's largest 5G network. It could happen, you know.


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posted Thursday Oct 4, 2012 by PLuGHiTz_Jon

Looks like T-Mobile just bought their infrastructure a wireless makeover :) I wonder if Catherine Zeta Jones had anything to do with it?

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