Home » Audio »Competition »Consumer News »MetroPCS »T-Mobile »Wireless Broadband » Currently Reading:

Deutsche Telekom’s T-Mobile USA Confirms Talks to Acquire MetroPCS

Phillip Dampier October 2, 2012 Audio, Competition, Consumer News, MetroPCS, T-Mobile, Wireless Broadband No Comments

Deutsche Telekom AG, parent company of T-Mobile USA today confirmed it was in talks with MetroPCS Communications, Inc., to merge their two wireless businesses to achieve the greater scale both need to compete with Verizon Wireless and AT&T.

Bloomberg News reports DT’s supervisory board will meet tomorrow to approve the transaction.

The sixth largest wireless company in the U.S. is about to merge with the fourth largest, according to news reports.

The combination would inject an additional 9.3 million current MetroPCS customers (the sixth largest wireless carrier) into the T-Mobile USA family. That would more than make up the 2.76 million former T-Mobile contract customers that fled the carrier during the last two years, especially after learning the company was planning to merge with AT&T.

But some challenges are likely to remain after the merger gets government approval:

  • T-Mobile remains largely a postpaid, 2-year contract-oriented company while MetroPCS operates a no-contract, prepaid offering. T-Mobile could transition its prepaid division to MetroPCS’ branding, or fold MetroPCS into T-Mobile and eventually discontinue the MetroPCS brand;
  • MetroPCS operates a CDMA network incompatible with T-Mobile’s GSM network. Both carriers are moving towards adopting 4G LTE service, but legacy customers will not be able to use existing phones on each other’s networks.

MetroPCS currently offers home coverage in 19 metropolitan markets and surrounding areas including New York City/Northern New Jersey, Atlanta, Bakersfield, Boston, Dallas, Detroit, Jacksonville, Las Vegas, Los Angeles, Miami, Orlando, Philadelphia, Providence, Riverside, Sacramento, San Francisco, San Bernardino, San Jose, Shreveport, and Tampa.

[flv]http://www.phillipdampier.com/video/CNBC T-Mobile Deal For PCS in the Works 10-2-12.flv[/flv]

CNBC reports on the planned merger of MetroPCS and T-Mobile USA, the first major wireless merger deal since the rejected merger of T-Mobile USA and AT&T.  (3 minutes)

Search This Site:

Contributions:

Recent Comments:

  • Alan Rodin: I have contacted the Simmons Hanly Conroy law firm. They are one of the top class action law firm in the U.S. If you would like to join a class action...
  • Natasha Massey: This happened to us! I called to cancel our service because we’d be moving in one week to a new state. The rep we spoke to over the phone said we ...
  • Mike: Maybe your Line filters are bad. Any phone plugged into a jack will require line filter. Just a suggestion....
  • Vanessa Tomblin: Copper is so obsolete but you can’t explain to some ppl they need to complain to the fcc to get things done!...
  • Kay Tomblin: Exactly they have given stimulus money several times w The buying of frontier from Verizon and now grants which they if used on customers at all are ...
  • Bill Denham: Their service is a joke. It's out more then it's in. The price is not worth it. Total crap service....
  • Deborah: I bought my system once it was under Spectrum . I am pissed . I’m sure there will be a law suit . They can add me to there list . I chose though to g...
  • James R Curry: Steve Burke really creating some buzz for the service there, talking about "Shareholder value" by the third sentence. My hand involuntarily reached f...
  • Person: You don't need to use their equipment. Toss it in the closet and lock it away. That's what I do....
  • Ryan Faley: Pretty much...
  • shishir c babu: First of all there was no preparatory time given to the subscribers about the change.I came to know of it only in the first week of January!! Second t...
  • Alan Rodin: If there is a class action lawsuit over this count me in. I am very irate over having around $1000 of hardware go to waste. Why cant they recommend a ...

Your Account: