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

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

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52 Comments

1. applesauce

Posts: 165; Member since: Aug 26, 2012

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

30. thelegend6657 unregistered

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

31. StalkinUrMom

Posts: 111; Member since: Apr 16, 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.

32. nak1017

Posts: 328; Member since: Jan 08, 2010

Science (I have no idea)

34. remixfa

Posts: 14605; Member since: Dec 19, 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.

56. thelegend6657 unregistered

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

58. txwalkr

Posts: 1; Member since: Oct 18, 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.

46. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

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

52. lsutigers

Posts: 832; Member since: Mar 08, 2009

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

2. -box-

Posts: 3991; Member since: Jan 04, 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

19. StalkinUrMom

Posts: 111; Member since: Apr 16, 2012

No! Carly looks so sexy in pink :(

21. -box-

Posts: 3991; Member since: Jan 04, 2012

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

24. g2a5b0e unregistered

Magenta, actually. More purple than pink.

45. Goldeneye

Posts: 419; Member since: Jan 22, 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!

3. Bashok

Posts: 36; Member since: Dec 14, 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?

13. marcdunn82

Posts: 10; Member since: Oct 03, 2012

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

22. -box-

Posts: 3991; Member since: Jan 04, 2012

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

53. lsutigers

Posts: 832; Member since: Mar 08, 2009

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

4. mad5870

Posts: 60; Member since: Nov 21, 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

6. crankyd00d

Posts: 191; Member since: Oct 17, 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

9. mad5870

Posts: 60; Member since: Nov 21, 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...

15. marcdunn82

Posts: 10; Member since: Oct 03, 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.

47. iCandy

Posts: 46; Member since: Dec 07, 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.

5. kshell1

Posts: 1143; Member since: Oct 05, 2011

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

7. crankyd00d

Posts: 191; Member since: Oct 17, 2011

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

44. laheelahee

Posts: 213; Member since: Apr 09, 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...

8. mad5870

Posts: 60; Member since: Nov 21, 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)

10. kshell1

Posts: 1143; Member since: Oct 05, 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.

11. mad5870

Posts: 60; Member since: Nov 21, 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.

12. kshell1

Posts: 1143; Member since: Oct 05, 2011

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

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