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MetroPCS subject of takeover rumors

Posted: , by Alan F.

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MetroPCS subject of takeover rumors
Pre-paid carrier MetroPCS, the nation's fifth largest mobile operator in the U.S., is the subject of takeover speculation once again. According to DealReporter, MetroPCS, with just under 10 million customers, is being targeted by T-Mobile, Sprint and even satellite television provider Dish Network. Back in February, Sprint CEO Dan Hesse had backed an $8 billion purchase of MetroPCS and the deal required only a thumbs up from Sprint's board which is usually a formality when the CEO backs a deal. But in this case, Sprint's board rejected the deal and both carriers walked away.

The Samsung Galaxy S III is coming to MetroPCS

The Samsung Galaxy S III is coming to MetroPCS

With its LTE network, MetroPCS might be a great fit for Sprint, which is just building out its own LTE pipeline and has 24 cities covered, and T-Mobile which is planning on starting its own LTE network sometime next year. According to DealReporter, talks are still continuing with all three parties and MetroPCS. Spokesmen for all of the players involved refused to comment. MetroPCS has LTE coverage in 14 markets with about 1 million customers using the speedy service. The carrier plans on adding VoLTE service and has already started it up in Dallas-Ft. Worth although in other areas the service will be delayed by 4-6 months for "fine-tuning".

The pre-paid carrier has been trying to compete with the big boys by offering LTE and top-shelf phones like the Samsung Galaxy S III. Even if a deal is reached by MetroPCS and another company, the regulators will have to step in as they did with AT&T's proposed purchase of T-Mobile. Considering that Sprint and T-Mobile are the nation's third and fourth largest carriers respectively, there should be fewer hurdles if either one decides on picking up MetroPCS.

source: DealReporter (subscription req'd) via Bloomberg

28 Comments
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posted on 30 Sep 2012, 18:20

1. Bernoulli (Posts: 1604; Member since: 01 Sep 2012)


Isn't US Cellular the nation's fifth largest wireless carrier? And if t-mobile intends to pick this company they will have to do an exaggerated investment, since they operate in different blocks of spectrum and they are a CDMA carrier....t-mobile wont be acquiring them I can promise you that

posted on 30 Sep 2012, 18:28 2

2. e.wvu (unregistered)


Yea, I thought U.S. Cellular was the 5th largest carrier as well...

posted on 30 Sep 2012, 18:31 7

3. sniper1087 (Posts: 408; Member since: 31 Dec 2011)


no not even close, U.S. Cellular, owns and operates the eighth largest[1] wireless telecommunications network in the United States, behind Verizon Wireless, AT&T Mobility, Sprint Nextel, T-Mobile USA, Clearwire, Metro PCS, and Leap Wireless. As of 2012, they serve about 5.8 million customers in 126 markets in 26 U.S. states.[2] The company has its headquarters in Chicago, Illinois.

posted on 30 Sep 2012, 18:38 9

5. Berzerk000 (Posts: 4109; Member since: 26 Jun 2011)


Nice Wiki copy/paste work you did there.

posted on 30 Sep 2012, 19:09 5

9. sniper1087 (Posts: 408; Member since: 31 Dec 2011)


indeed I did copy paste it but it proved that it wasn't the top 5 right?

posted on 01 Oct 2012, 01:35

17. Bernoulli (Posts: 1604; Member since: 01 Sep 2012)


That wasn't even my point moron! It was about how this would be plain stupid if T-Mobile decided to acquire a non gsm carrier, it's just not rational

posted on 01 Oct 2012, 02:05

20. applesauce (banned) (Posts: 165; Member since: 26 Aug 2012)


AT&T's acquired non-GSM carriers in the past (most recently the parts of Alltel that Verizon wasn't allowed to get), so why can't T-Mobile? LTE uses SIM cards on all the U.S. carriers that offer it as far as I know, so if they do what AT&T does/did and have their customers get a GSM-only phone when they upgrade, shouldn't be a problem.

posted on 01 Oct 2012, 08:55

25. Bernoulli (Posts: 1604; Member since: 01 Sep 2012)


Yeah T-Mobile fortunately is not AT&T where they force people to "upgrade" and give them an expensive phone for cheap and a higher bill, don't forget these people are not under a contract, plus AT&T has always been noted for having loads of cash, T-Mobile on the other hand even though they're cheaper...I guess maybe that's why, the more expensive the more people they have, such as Verizon (most expensive), AT&T (slightly cheaper) sprint (cheaper, but crappier than AT&T) T-Mobile(cheapest, yet better than AT&T and sprint) people are just simply stuck on the iPhone trend and decide to pay the premium for it

posted on 02 Oct 2012, 00:38

28. letgomyeggroll (Posts: 137; Member since: 13 Jun 2012)


All LTR does not required SIM card. None of the Sprint phone uses for SIM card for LTE. The SIM card are mainly GSM that holds the information for the network. Verizon does required an additional chip for their LTE network.

And yes that is kinda strange for T-Mobile to acquire Metrp PCS since they are GSM which will never work with CDMA.

posted on 01 Oct 2012, 01:40

19. Bernoulli (Posts: 1604; Member since: 01 Sep 2012)


Then I guess phone arena made a mistake when they said that the galaxy note was coming too the top five players, Verizon AT&T T-Mobile sprint and us cellular then

posted on 30 Sep 2012, 19:31 1

11. metalpoet (unregistered)


Heres a thought, Us Cellular, leap wireless, and Metro PCS merge together to compete against the big four! lol

posted on 30 Sep 2012, 21:35 1

16. Allen3697 (Posts: 86; Member since: 26 Mar 2012)


That's not a bad idea in all seriousness. Cricket +US Cellular + MetroPCS = good idea, about 21 million customers. Cricket won't be around much longer, and neither will MetroPCS. Along with TracFone's 21 million customers, there would be 6 'big players' in America, and I think that'd be good.

posted on 01 Oct 2012, 08:57

26. Bernoulli (Posts: 1604; Member since: 01 Sep 2012)


Considering they are all non contract customers who can leave when they feel like it I don't think is a convenient idea

posted on 30 Sep 2012, 18:33 2

4. e.wvu (unregistered)


Yea, I just looked it up. My mistake.

posted on 30 Sep 2012, 18:40 3

6. Berzerk000 (Posts: 4109; Member since: 26 Jun 2011)


Why would T-Mobile be interested in Metro? Isn't Metro CDMA?

posted on 30 Sep 2012, 19:05 1

8. XPERIA-KNIGHT (unregistered)


then it would make more sense for sprint to takeover........boost and virgin mobile (cdma) as well as sprint them selves.....all cdma

posted on 30 Sep 2012, 19:09 3

10. sniper1087 (Posts: 408; Member since: 31 Dec 2011)


they are interested in their Customer base and LTE Spectrum

posted on 01 Oct 2012, 01:37

18. Bernoulli (Posts: 1604; Member since: 01 Sep 2012)


Have you not been reading how metro pcs is cdma??? They'll have to do a whole lot of refarming if they truly want it, which would be much more costly than just refarming their own AWS bands

posted on 30 Sep 2012, 18:46 1

7. Maverick1 (Posts: 26; Member since: 30 Sep 2012)


Sprint would benefit from this.

T Mobile would likely not be a candiate due to budget restrains since the fail takeove from AT&T.

Dish would definelty be a contender.

posted on 30 Sep 2012, 19:33 2

12. metalpoet (unregistered)


Oh god please dont let DISH Network have anything to do with cell phones!

posted on 01 Oct 2012, 08:28 2

24. tuxpower (Posts: 10; Member since: 26 Jul 2012)


headlines: DISH Networks sets up cellular network.
downside: You can't make phone calls if it's overcast or raining...

:-)

posted on 30 Sep 2012, 20:09

13. squallz506 (banned) (Posts: 1075; Member since: 19 Oct 2011)


I heard it is a metropcs-cricket merger.

posted on 30 Sep 2012, 20:26 1

15. sniper1087 (Posts: 408; Member since: 31 Dec 2011)


there was talks a long time ago but now is not one option, cricket is worth less than metroPCS and they are looking for a partner with more capital.

posted on 30 Sep 2012, 20:23

14. phil2n (Posts: 476; Member since: 30 Apr 2012)


blah blah blah.. t-mo acquiring sprint Failed..

t-mo again, i think its ........................

posted on 01 Oct 2012, 07:09

22. tigermcm (Posts: 752; Member since: 02 Sep 2009)


when did tmo try aquiring sprint????

posted on 01 Oct 2012, 04:26

21. andynaija (Posts: 485; Member since: 08 Sep 2012)


DISH Network please just stick to dishes. Because everything will probably go downhill if they mess with phones.

posted on 01 Oct 2012, 07:33

23. Beholder88 (Posts: 81; Member since: 30 Mar 2012)


When did T-Mobile go CDMA? As I recall they are a GSM carrier. If they went for metroPCS, they would be edging into the CDMA game, which almost doesn't make sense. It would make more sense for Sprint to buy them, as they are already CDMA, and they could use the network to their advantage.

posted on 01 Oct 2012, 10:09

27. disneydad (Posts: 114; Member since: 26 Mar 2012)


Metro is currently upgrading their entire network to LTE so the "Metro is CDMA and TMO is GSM" argument is not as big of a factor as you'd think. If TMO is in the hunt they'll most likely keep Metro prepaid and become even more of a post/pre hybrid carrier with a very inviting device lineup. The big reason to acquire Metro for any carrier is taking competition off of the table and even bigger, SPECTRUM. With TMO and Metro already running on the same AWS frequencies (mostly) it makes sense.
Sprint doesn't need ANOTHER prepaid carrier purchase. They need to focus their capital on their LTE build out and enhancing coverage.

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