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T-Mobile merger with MetroPCS approved by Deutsche Telekom, MetroPCS boards

Posted: , by Victor H.

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T-Mobile merger with MetroPCS approved by Deutsche Telekom, MetroPCS boards
The boards of Deutsche Telekom, owner of T-Mobile in the United States, and MetroPCS have both approved a deal that would merge the T-Mobile and MetroPCS into one carrier operating under the T-Mobile brand. The new operator will be headed by T-Mobile chief executive John Legere. The deal is expected to close in the first half of 2013.

Months after the U.S. Department of Justice denied AT&T’s attempt to acquire T-Mobile, the nation’s fourth-largest operator, now T-Mobile is seeking to merge with MetroPCS.

Regional carrier MetroPCS is known for being the first one to roll out an LTE network in the States. Formerly known as General Wireless, the operator has the biggest subscriber base out of the big four carriers with around 9.3 million subs. T-Mobile on the other hand has 33.2 million subscribers.

Combined the T-Mobile MetroPCS joint carrier would have north of 42.5 million subscribers, coming much closer to the third place held by Sprint with its 56 million subscribers.

source: Wall Street Journal

52 Comments
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posted on 03 Oct 2012, 07:42 18

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


That was quick. Good luck to the combined companies, if approved.

posted on 03 Oct 2012, 09:15 1

30. thelegend6657 (unregistered)


So why is MetroPCS + T-Mobile okay while T-Mobile + AT&T bad ?

posted on 03 Oct 2012, 09:35 11

31. StalkinUrMom (Posts: 111; Member since: 16 Apr 2012)


At&t is HUGE compared to Metro. The FCC didn't let it happen because there's a pretty good chance that a monopoly could result from two major competitors (at&t, T-mo) merging.

posted on 03 Oct 2012, 09:37

32. nak1017 (Posts: 328; Member since: 08 Jan 2010)


Science
(I have no idea)

posted on 03 Oct 2012, 09:49 9

34. remixfa (Posts: 14255; Member since: 19 Dec 2008)


because Tmobile + ATT = competition destruction. Merging the 2 took away the the cheapest of the big 4 carriers and made ATT substantially the largest carrier in the US. Between ATT and VZw, they would have about 80% of all customers creating a virtual monopoly since they both like to mirror each others super expensive pricing.

Tmobile and Metro together dont = sprint's carrier base. Also their plans are similar in pricing for prepay so the price effect is minimal. Having Tmobile be a larger company puts more pricing pressure on ATT/VZW to bring prices down a notch, unlike the TMo-ATT merger which only encouraged them to stay high with lack of pricing competition.

posted on 04 Oct 2012, 03:35

56. thelegend6657 (unregistered)


Oh i see . But Metro uses CDMA and tmobile uses GSM right . I don't think they mix

posted on 18 Oct 2012, 17:21 1

58. txwalkr (Posts: 1; Member since: 18 Oct 2012)


the intent is because with Metro having LTE this would get TMobile a foot in the carrier battle since all carriers are pushing LTE with Tmobile prices being genrally more affordable they would have LTE and could compete better against sprint in Third and get in markets they are not in or strengthen their sprectrum with Metro where they have weak cignal or no cignal. I get your question I though the same thing because sprint was also rumored as one of the original intended's to buy tmobile who is also cdma vs gsm then came the att that was bad more overall competition and now Tmobile with metro gives better comptetion for pricing and tmobile a opportunity in the LTE market against the top 3 carriers.

posted on 03 Oct 2012, 13:10 2

46. Droid_X_Doug (Posts: 5993; Member since: 22 Dec 2010)


I hope this 'new' carrier puts pressure on AT&T and VZW. Only good things come from more competition.

posted on 03 Oct 2012, 16:47 3

52. lsutigers (Posts: 820; Member since: 08 Mar 2009)


Up next, Sprint gobs up US Cellular to give them about 62 million customers.

posted on 03 Oct 2012, 07:45 6

2. -box- (Posts: 3991; Member since: 04 Jan 2012)


They didn't waste any time, did they? Hope they get approved, and maybe change T-Mobile's color scheme in the process. I like the carrier, but not the pink. Green or dark blue, perhaps

posted on 03 Oct 2012, 08:26 5

19. StalkinUrMom (Posts: 111; Member since: 16 Apr 2012)


No! Carly looks so sexy in pink :(

posted on 03 Oct 2012, 08:32 2

21. -box- (Posts: 3991; Member since: 04 Jan 2012)


True, and they've been putting a lot of pink in their ads lately

posted on 03 Oct 2012, 08:37 2

24. g2a5b0e (Posts: 3725; Member since: 08 Jun 2012)


Magenta, actually. More purple than pink.

posted on 03 Oct 2012, 13:04

45. Goldeneye (Posts: 419; Member since: 22 Jan 2011)


So looks like "you never know who you work for" right at&t?

Funny at&t is paying for this deal and all related costs!

posted on 03 Oct 2012, 07:48 2

3. Bashok (Posts: 36; Member since: 14 Dec 2010)


"Formerly known as General Wireless, the operator has the biggest subscriber base out of the big four carriers with around 9.3 million subs."

LOL you mean the smallest?

posted on 03 Oct 2012, 08:12 3

13. marcdunn82 (Posts: 10; Member since: 03 Oct 2012)


They are number five, making them the biggest non big four carrier.

posted on 03 Oct 2012, 08:33 8

22. -box- (Posts: 3991; Member since: 04 Jan 2012)


I think it's supposed to read "outSIDE the big four", meaning fifth or smaller

posted on 03 Oct 2012, 16:49 1

53. lsutigers (Posts: 820; Member since: 08 Mar 2009)


Actually, Clearwire is the 5th largest carrier behind T-Mobile with 11 million subs.

posted on 03 Oct 2012, 07:48 2

4. mad5870 (Posts: 60; Member since: 21 Nov 2011)


This is kind of interesting i think. mosty because of the technology. metro using cdma and t-mobile using gsm. Hope everything works out. just odd feel like it would be a lot of money to convert networks or maintian two netwoks

posted on 03 Oct 2012, 07:56 4

6. crankyd00d (Posts: 191; Member since: 17 Oct 2011)


Eventually CDMA will be phased out, LTE & spectrum is what T-Mobile wants out of this deal so basically it's a forward looking business move

posted on 03 Oct 2012, 08:00 4

9. mad5870 (Posts: 60; Member since: 21 Nov 2011)


That is what i was thinking. as i say in a comment lower. they will need to decide to keep one 3G service or get rid of one.

personally i believe that Tmobile covers more people than metro so...

posted on 03 Oct 2012, 08:14 1

15. marcdunn82 (Posts: 10; Member since: 03 Oct 2012)


I think one big aspect of this is spectrum. Metro PCs has more bands that are iPhone compatible for one. Plus an already functional lte network.

posted on 03 Oct 2012, 13:18 2

47. iCandy (Posts: 46; Member since: 07 Dec 2011)


This will prove an easy merger for T-Mobile and ultimately beneficial to Sprint. Synergies are perfect: MetroPCS and T-Mobile share the same bands 1700 & 1900 and are pledged to move forward with LTE. New MetroPCS handsets need merely to adopt GSM/HSPA on the 1900 band; T-Mobile will start to share LTE on 1700. A problem for MetroPCS subscribers with old 1900 CDMA handsets? None at all - T-Mobile/MetroPCS will continue the MVNO agreement with Sprint and those old handsets will use Sprint's 1900 CDMA until they are no longer in use. This makes MetroPCS/T-Mobile merger smooth and gives Sprint 2 years or so of additional MVNO revenue. Couldn't be sweeter.

posted on 03 Oct 2012, 07:55 1

5. kshell1 (Posts: 1143; Member since: 05 Oct 2011)


Hmmmmmm Nice. People need to remember Metro isn't 100%CDMA anymore, LTE is a GSM tech

posted on 03 Oct 2012, 07:58 3

7. crankyd00d (Posts: 191; Member since: 17 Oct 2011)


My point exactly. With everyone going to LTE all of the carriers will basically be GSM in a few years

posted on 03 Oct 2012, 12:05

44. laheelahee (Posts: 213; Member since: 09 Apr 2012)


i wish it would happen already! i hate gsm vs cdma. in what world does it make sense to buy a different phone for every carrier? only in the usa...

posted on 03 Oct 2012, 07:58 2

8. mad5870 (Posts: 60; Member since: 21 Nov 2011)


yeah but LTE is only in a few markets. and their 3g service is CDMA. Still being two different 3g services.

They have LTE in 14 Markets. I see that being easy to merge. but they will need to either keep both 3G services or get rid of one.

(http://www.metropcs.com/metro/maps/coverage-map.j​sp)

posted on 03 Oct 2012, 08:00

10. kshell1 (Posts: 1143; Member since: 05 Oct 2011)


I said it isn't 100% didn't say CDMA was non existent. The cdma would cover areas tmobiles HSPA doesn't cover though.

posted on 03 Oct 2012, 08:08

11. mad5870 (Posts: 60; Member since: 21 Nov 2011)


thank you i can read. i didn't intend for it to sound like i was attacking or saying you were misunderstood.

i just really curious about how it will effect finacially having two different 3G networks.

posted on 03 Oct 2012, 08:11

12. kshell1 (Posts: 1143; Member since: 05 Oct 2011)


It may help or harm, we won't know until the deed is done.

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