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:

  • Dylan: I’m sure Charter is gearing up for this. Hopefully during the investor call on October 26th we will hear more about FDX. I know they completed Docsis ...
  • Ian Littman: Question is, which will happen first: symmetric gigabit from Spectrum or Grande over coax, or GFiber making it west of I-35 and north of downtown with...
  • Ian Littman: Just got Spectrum installed last week (took 'em five months). My initial bill lists the MRC for gigabit at $104.99 after promos. Gritting my teeth as ...
  • Fred Hall: Spectrum should just pay up and be happy....$1 or $2 million is chump change to them....
  • Doug: New York Hudson Valley: Broadcast TV surcharge from $8.85 to $9.95. (So it's really $33.84 for Starter-TV). Digital Adapter from $4.99 to $5.99. I ...
  • ALISON LIBBETT: They ended up taking mail from health insurance company along with drivers license....
  • A.B.: Hi, anybody know if they've actually stopped accepting customers for this? The headline says they've "sunset[ted]" the tier, but the article makes it ...
  • ALISON LIBBETT: Do they take any other form of mail besides utility bill or credit card bills? Just wondering because I got the same thing....
  • sfsfsdfsdf: So instead of lowering prices like they should to more reasonable lvls they instead decide to hike up rates?...
  • Todd: If the fine print is that bad, it's just as bad as Spectrum's $14.99 Internet Assist. They offer it, but no one can actually qualify to get it. It s...
  • Mike W.: They are not doing the right thing by any means. This is simply a PR stunt to make them look good to everyone who doesn't realize this is a BS progra...
  • Dylan: I better be getting 200mbps instead of 100 soon then if I do get a increase from $55 to $60 for bundle internet services. I understand the investments...

Your Account: