MetroPCS subject of takeover rumors

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.

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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14 Comments

4. e.wvu unregistered

Yea, I just looked it up. My mistake.

6. Berzerk000

Posts: 4275; Member since: Jun 26, 2011

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

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

10. sniper1087

Posts: 537; Member since: Dec 31, 2011

they are interested in their Customer base and LTE Spectrum

7. Maverick1

Posts: 31; Member since: Sep 30, 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.

12. metalpoet unregistered

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

24. tuxpower

Posts: 10; Member since: Jul 26, 2012

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

13. squallz506

Posts: 1075; Member since: Oct 19, 2011

I heard it is a metropcs-cricket merger.

15. sniper1087

Posts: 537; Member since: Dec 31, 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.

14. phil2n

Posts: 519; Member since: Apr 30, 2012

blah blah blah.. t-mo acquiring sprint Failed.. t-mo again, i think its ........................

22. tigermcm

Posts: 861; Member since: Sep 02, 2009

when did tmo try aquiring sprint????

21. andynaija

Posts: 1255; Member since: Sep 08, 2012

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

23. Beholder88

Posts: 86; Member since: Mar 30, 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.

27. disneydad

Posts: 114; Member since: Mar 26, 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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