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Thread: T-Mobile USA in Talks to Acquire MetroPCS

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    MMi Staff Writer Akshay Masand's Avatar
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    Default T-Mobile USA in Talks to Acquire MetroPCS


    MetroPCS is currently in talks with Deutsche Telekom to merge with T-Mobile USA and although no agreement has been reached, the two companies seem to be having ongoing discussions regarding the matter. An acquisition such as this one would add a potential 9 million subscribers to T-Mobile USA’s user base. The Dallas-based MetroPCS recently issued a press release stating the current situation between the two companies:

    MetroPCS today confirmed that it is in discussions with Deutsche Telekom regarding an agreement to combine T-Mobile USA and MetroPCS. There can be no assurances that any transaction will result from these discussions, and the Company does not intend to comment further unless and until an agreement is reached.
    Acquiring MetroPCS seems like it would be a big benefit to Deutsche Telekom as T-Mobile USA has struggled to compete with “The Big 3” (Verizon, AT&T, and Sprint) for subscribers for several years now. AT&T previously attempted to acquire T-Mobile but ended up withdrawing their acquisition after the U.S. government raised antitrust concerns. This acquisition of MetroPCS would give T-Mobile an influx of subscribers as well as greatly supplement T-Mobile’s own efforts in rolling out their LTE network considering that MetroPCS already has one. Overall, the whole merger seems like a win-win situation for both companies but we'll have to see if they reach an appropriate agreement and if the government allows it.

    Despite being beneficial to T-Mobile, MetroPCS doesn’t bring an important piece of the puzzle to the nation’s fourth largest carrier that a merger with AT&T would have provided, and that’s the iPhone. On the bright side, the merger might put T-Mobile in a better position to strike a deal with Apple in the future but for now, merger or no merger, T-Mobile users will have to abide by the BYOI rule (Bring-Your-Own-iPhone) if they want to use Apple’s handset on the network.

    Source: PR Newswire via iMore

    Twitter: @AkshayMasand

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    My iPhone is a Part of Me
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    This wouldn't be bad if they get it completed swiftly and get Metro's LTE network open to current T-Mobile users. I do foresee the FCC and FTC requiring them to divest out a bunch of overlapping markets.
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    iPhone? More like MyPhone
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    Metro is garbage tmo needs to stay away lol

  4. #4
    I rather see T-Mobile succeed than fail. Especially seeing as how they're the only other GSM carrier in the US. Better than the alternatives of Verizon and Sprint which ultimately are still truckin along with their CDMA technology that gets more and more outdated with every day.

  5. #5
    Everybody knows how well marrying different network technologies works right? If not, just ask Sprint Nextel who are still barely treading water and they merged in 2004! Sprint was even in a better financial position at the time, than T-Mobile is now, if I recall correctly. When this venture fails and T-Metro puts itself up for sale again, maybe the government will actually have enough sense to let AT&T buy them, like it should have in the first place.

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    Livin the iPhone Life bigboyz's Avatar
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    I think we ALL need Tmo to succeed. You don't want AT&T and Verizon running the entire show. Options have always been the spice of life. Some users with Verizon and AT&T do not get good reception in certain areas where Tmo does have a good signal and vice versa(not to mention plan prices) You see all the "Family Plans" that are a joke> share data..share this share that boooo! I hope they do merge and someday get the iPhone. Not sure why they don't have it yet but it needs to get done for them to survive moving forward.

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    iPhone? More like MyPhone CONVBMW's Avatar
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    Quote Originally Posted by bigboyz View Post
    I think we ALL need Tmo to succeed. You don't want AT&T and Verizon running the entire show. Options have always been the spice of life. Some users with Verizon and AT&T do not get good reception in certain areas where Tmo does have a good signal and vice versa(not to mention plan prices) You see all the "Family Plans" that are a joke> share data..share this share that boooo! I hope they do merge and someday get the iPhone. Not sure why they don't have it yet but it needs to get done for them to survive moving forward.
    Very VERY well said. The last thing we need is to have AT&T and Verizon Strong arming the market and customers as well.

    Good job OP

  8. #8
    Quote Originally Posted by bleuzz View Post
    Everybody knows how well marrying different network technologies works right? If not, just ask Sprint Nextel who are still barely treading water and they merged in 2004! Sprint was even in a better financial position at the time, than T-Mobile is now, if I recall correctly. When this venture fails and T-Metro puts itself up for sale again, maybe the government will actually have enough sense to let AT&T buy them, like it should have in the first place.

    Wait, isn't T-Mobile and MetroPCS both using GSM/HSPA/LTE technology?

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    iPhone? More like MyPhone Painkiller006's Avatar
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    Quote Originally Posted by Lohand View Post
    Wait, isn't T-Mobile and MetroPCS both using GSM/HSPA/LTE technology?
    T-Mobile uses GSM, Metro uses CDMA

  10. #10
    Quote Originally Posted by Painkiller006 View Post
    T-Mobile uses GSM, Metro uses CDMA
    Yep, got that answer after the post and I see there is plans to shutdown CDMA by 2015.

    Look at T-mobile all spending the cash they got from AT&T in that failed merger attempt...

  11. #11
    My iPhone is a Part of Me
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    So apparently Metro is buying T-Mobile, per the latest news... so that might change things.

    I still hope they stick with the GSM/UMTS/LTE side and not the CDMA side.
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