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MetroPCS subject of takeover rumors

Posted: , by Alan F.


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

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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: 4239; 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: 481; Member since: 31 Dec 2011)

they are interested in their Customer base and LTE Spectrum

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: 481; 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: 487; 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: 841; Member since: 02 Sep 2009)

when did tmo try aquiring sprint????

posted on 01 Oct 2012, 04:26

21. andynaija (Posts: 710; 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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