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T-Mobile's parent company rumored to be in talks for merging it with Metro PCS

By Daniel Petrov

Updated: May 10, 2012, 4:09 AM

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Deutsche Telekom, whose subsidiary is T-Mobile USA, is rumored to be in advanced talks for acquiring MetroPCS, and merging it with T-Mobile, after the merger with AT&T didn't go down well with the FCC.

MetroPCS was the first to offer an LTE network and an LTE phone, and, despite its limited footprint, that must count for something in DT's eyes. The main reason, however, might be MetroPCS's 9 million customers, which will limit the outflow damage that T-Mobile sustained in Q4 2011, for example, after it became clear it won't be carrying the iPhone.

T-Mobile is the only one of the big four US carriers whose eventual LTE network is not already launched or about to be operational, but Metro PCS' AWS spectrum is not really that valuable for it, since it doesn't hold much to begin with. Moreover, MetroPCS is a CDMA carrier, incompatible with the GSM tech of T-Mobile, and its LTE service is pretty slow, compared to Verizon or AT&T.

Deutsche Telekom is looking at it from an entirely business perspective, though - after the failed $39 billion merger with AT&T, they want to bulk up T-Mobile, make it more attractive for investors, and spin it off in an IPO, or in an outright sale, analysts say.

source: Bloomberg

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Daniel, a devoted tech writer at PhoneArena from 2010 to 2025, has been engrossed in mobile technology since the Windows Mobile era. His expertise spans mobile hardware, software, and carrier networks, and he's keenly interested in the future of digital health, car connectivity, and 5G. Beyond his professional pursuits, Daniel finds balance in travel, reading, and exploring new tech innovations, while contemplating the ethical and privacy implications of our digital future.