MetroPCS says it is talking to T-Mobile about a merger

MetroPCS says it is talking to T-Mobile about a merger
The nation's fifth largest carrier, MetroPCS, released a statement on Tuesday saying that it is in talks with T-Mobile about a merger. The latter is the nation's fourth largest carrier and by purchasing MetroPCS, it would give T-Mobile service in 14 LTE cities instantly, along with about 1 million LTE customers. Currently, T-Mobile does not have an LTE pipeline although it is expected to start building one next year.

MetroPCS has focused on the urban market

MetroPCS has focused on the urban market

While the statement from MetroPCS merely said that it is engaging in talks regarding a combination of the two carriers. T-Mobile is owned by Deutsche Telekom and was courted by AT&T in a potential $39 billion deal that was never completed after AT&T failed to obtain regulatory approval for the deal which was being challenged by the Justice Department.

It might be easier for a T-Mobile-MetroPCS to get the necessary regulatory thumbs up as a deal would combine the nation's fourth and fifth largest operators and would also make T-Mobile stronger and able to better compete with Verizon and AT&T. Additionally, MetroPCS is a pre-paid carrier and combining it with T-Mobile would not increase the latter's market share of the post-paid market.

While there was no word about how how much a T-Mobile purchase of MetroPCS would cost, last year Sprint and its CEO Dan Hesse had a deal all set to purchase MetroPCS for $8 billion. Sprint's board voted against the deal saying that it didn't feel right.


source: MetroPCS

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24 Comments

1. nnaatthhaannx2

Posts: 820; Member since: Oct 19, 2011

BREAKING NEWS! ...what?

4. PhenomFaz

Posts: 1236; Member since: Sep 26, 2012

Because t-mobile and metropcs can really use each other. their consolidation will only lead to benefit the customers. Also Carly is really cute :)

2. raphael007

Posts: 43; Member since: Jun 12, 2012

interesting........

3. XPERIA-KNIGHT unregistered

this seems like some really good news......could really help the mobile world out alot and people who are struggling to get good deals on plans.....

5. sprockkets

Posts: 1612; Member since: Jan 16, 2012

Meh, a GSM/UMTS/HSDPA carrier and a CDMA/LTE network, with the only potential crossover at this time being LTE, if they used the same Freq. Good luck.

6. XPERIA-KNIGHT unregistered

yeaaaaa..... it would seem sprint would be the better choice but who knows hopefully they can work something out

8. MartyK

Posts: 1043; Member since: Apr 11, 2012

I was thinking the same thing..MetroPCS is CDMA and TMobile is GSM.. Interesting, maybe SprinTMPCS group might be the best solution to force those other big guys to lower their prices..hummm :)

14. remixfa

Posts: 14605; Member since: Dec 19, 2008

The only way it would work is if they remained separate operating networks for existing customers and concentrated on quick LTE expansion to bring them all under one roof. At some point shortly after the merger they stop selling Metro phones and offer to bring existing customers over to Tmobile with some sort of special incentive on plan or device or both. You would probably be looking at like 2-5 years to fully merge both into one company and one operating signal depending on how aggressive TMobile wanted to be with getting people off of their CDMA metro phones. Even faster if they make Metro's CDMA signal some sort of MNVO spin off company and put metro's remaining users on that. Then technically all of Tmobile corporate customers would still be GSM/LTE and not CDMA as well. That's a lot of work for 9 million customers. Metro's LTE frikkin sucks balls too, so unless its a quick software upgrade to better LTE-10 / 100, I dont see that as any sort of actual benefit to TMobile.

17. paulyyd

Posts: 340; Member since: Jan 08, 2011

watch out, this guy is a merger pro^^^

20. XPERIA-KNIGHT unregistered

hahaha aye thats ma boy tho lol...........i think what theyr'e tryna do is set it up like how sprint has their prepaid area set up....you know (boost and virgin mobile)? seems like a good thing so let it happen i say :)

7. issa8

Posts: 54; Member since: Jul 26, 2011

I think Sprint would benefit more. They kinda suck right now.

9. Slammer

Posts: 1515; Member since: Jun 03, 2010

This makes no sense to me. Tmobile is GSM, MetroPCS is CDMA. The legacy of such technologies would be around for several+years. Ask Sprint how the merge with Nextel worked out for them. While transitioning to LTE would eliminate most of the compatibility issues, this will not happen overnight. I'm at a loss on what these two carriers are thinking. "IF" a merge were to take place, Sprint, in correlation with technology, is a much more practical understanding. John B.

23. sniper1087

Posts: 537; Member since: Dec 31, 2011

well metroPCS plans to move everybody to LTE and since they deplayed VoLTE already even though in a small are T-mobile could use the spectrum from LTE and Costumer base and with a stablished LTE network it will be easier for them expand of course a merger could take a while but a lot of people are willing to change if they get an incentive, plus metroPCS have shown really good numbers lately which are showing other companies as an appealing choice, because even though is small is still profitable.

10. Jphones

Posts: 253; Member since: Feb 10, 2012

I'm a tmobile rep and this makes perfect sense. Tmobile will still handle all the post paid with its gsm and metro would handle the prepaid. The LTE is what tmobile is really after and the prepaid sales and customer boom greatly helps them because they've been loosing customers. So tmobile would have a helping hand in attracting more customers and metro pcs has a solid customer base on the prepaid side. also saves tmobile some money on starting there lte network. win win for all parties involved

11. XPERIA-KNIGHT unregistered

GREAT^^ ........ :)

12. cptbeatstix

Posts: 101; Member since: Jul 19, 2012

Just an fyi, I'm also a T-Mobile Rep and we've actually spent most of this year setting up LTE. January is going to be when we start implementing the network. But, for the most part you're right.

15. remixfa

Posts: 14605; Member since: Dec 19, 2008

Tmobile wants the bandwith. CDMA is going to be a headache for them unless they MNVO the network until they can shut it down. Metro's LTE sucks and needs major improvement/upgrades. The real prize is the added spectrum for LTE which is something Tmobile desperately needs. Glad I left Tmo when I did if this goes through. I went through the VZW/Altel merger. It was a frikkin head ache and that was with the same CDMA to CDMA merger, not a CDMA to GSM headache. Also especially when they canned 9000 of us because alltell peeps got paid less. Guess what's probably going to happen to Tmobile employees since Metro peeps get paid a lot less.

18. Jphones

Posts: 253; Member since: Feb 10, 2012

have the metro lg motion 4g lte as my phone lte is great. obviously not in all areas but strong for the most part

19. Jphones

Posts: 253; Member since: Feb 10, 2012

that's great to hear makes our jobs alot easier

13. Ruckus

Posts: 286; Member since: Oct 20, 2011

This makes sense as to why T-Mo was selling a lot of their Towers. All in all it sounds like a pretty smooth move, just not sure how CDMA-GSM conversion will go? But it will definately put T-Mo on the LTE Map.

16. remixfa

Posts: 14605; Member since: Dec 19, 2008

no conversion needed. Metro is a prepay network. Give em warning that it will shut down on a certain date and flip all those CDMA towers to GSM and be done with it. Or run metro customers as an MNVO until your further a long with the LTE build out.

21. lnguyen7186

Posts: 27; Member since: May 30, 2011

FYI.CDMA have sim chip build in to the phones, and GSM needed sim chip in order to work. For instant Verizon's Motorola droid 4 CDMA/GSM in the US it used CDMA and over sea just pop in the sim and it's work flawless with LTE network.

22. Nadr1212

Posts: 741; Member since: Sep 22, 2012

OH MY GONDOLA!!!!!! This is one of the breakiest newsies of all time!!!!!!!!! (In the carrier & networks area)

24. Galen20K

Posts: 568; Member since: Dec 26, 2008

What people don't seem to Understand is that T-Mobile once acquiring Metro-PCS will shut down Metro's CDMA PCS network and transition it into HSPA+ PCS band. T-Mobile is not the least bit interested in Metro's 2G PCS network, it's interested in its spectrum to expand their own HSPA+42 PCS and free up most of AWS for its LTE network.

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