Wednesday, October 3, 2012

T-Mobile Announces MetroPCS Merger

T-Mobile this morning announced that it's merging with MetroPCS in a $1.5 billion deal. The two companies will unite under the T-Mobile name, with current T-Mobile parent company Deutsche Telekom to keep a 74 percent stake. The rest goes to MetroPCS shareholders, who also get the cash.
MetroPCS already has LTE up and running, a technology sorely lacking from T-Mobile's current U.S. offerings, so we'd expect that's part of the impetus behind all this. But it'll take a little time to get all that worked out.
  • The two companies actually will remain operating as fairly separate entities. Two business units. One network. MetroPCS isn't going anywhere for a few years.
  • They're hoping to have GSM-capable devices ready to sell on MetroPCS when the deal closes next year.
  • As we figured, LTE's playing ia big part here.

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