T-Mobile and MetroPCS announce merger agreement


The new T-Mobile will focus on 4G and LTE services, according to a statement from the company.

T-Mobile and MetroPCS have announced the boards of both companies have approved a potential merger. The news comes just one day after news leaked regarding the merger plans.

According to a joint press release issued by the companies, the proposed deal will give T-Mobile's parent company, Deutsche Telekom, a 74 percent stake in the combined company, while MetroPCS will retain a 26 percent control of the company. Additionally, MetroPCS shareholders will receive $1.5 billion in cash from Deutsche Telekom. Unlike T-Mobile, which is currently a privately held entity, the new company would be publicly traded on a U.S. stock exchange. The new company would keep the T-Mobile name.

If the merger goes through, the new T-Mobile would still significantly trail Verizon and AT&T in terms of wireless subscribers, although the company could be within striking distance of Sprint for third place. The new T-Mobile will have about 42.5 million wireless subscribers, Deutsche Telekom said. Verizon leads the wireless market with 111 million subscribers, followed by AT&T at 105 million subscribers and Sprint at 56 million subscribers.

The proposed merger will enhance and expedite T-Mobile's planned LTE rollout, the companies said.

In a statement provided by the two companies, the chief executive of MetroPCS, Roger D. Linquist, said the new T-Mobile will still offer MetroPCS's no-contract wireless plans and will offer customers improved service and coverage. 

Importantly, MetroPCS and T-Mobile have the same network strategies and LTE networks in the same spectrum bands, which we believe will accelerate the deployment of advanced services to our customers. Ultimately, this combination will create a stronger wireless provider nationally with broader value offerings to better serve our combined customers and drive shareholder value.

John Legere, president and chief executive of T-Mobile, added that the proposed new company will focus on affordable 4G services and seek to provide high-speed mobile services in more major cities.

We will be a stronger, value-focused competitor, providing customers with offerings such as our Unlimited Nationwide 4G Data and 'bring your own device' plans. These features, along with our ability to react with greater speed and effectiveness to customer and market opportunities, will deliver value to our customers, business partners, employees and shareholders.

MetroPCS shareholder approval is still needed to complete the merger, as are regulatory approvals. If all requirements are met, the companies expect to close the transaction in the first half of 2013.

Image via T-Mobile

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15 Comments

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My wife and bro in-law are both on Metro PCS and I have T-Mobile. I am OK with this. We have been with both companies for over 5 years now. Metro at first was not good but they have gotten a lot better. I am also in South Florida (Kendall area) and they only pay 60.00 a month consistently over the years which is great and they also have unlimited calls to their family in Peru and they can talk for hours and nothing changes as far as rates go.

I have also seen Metro ramp up to 4G. All their stores down here advertise it. We got her sister in NY (Korea Town) also the same plan and it works great. Bro In-Law got a Samsung with Gingerbread and it works awesome better than my T-Mobile Comet which is a joke but within a few months I will upgrade.

I also believe with this merger Metro may cover more areas. Right now they are limited and T-Mobile covers more ground this should change for Metro which is a good thing and they have many Android Power Phones. Basically that is there main OS

NeoPogo said,
would of been better with the AT&T merger...

No way!! God forbid that, I danced in one foot when I knew the merger wasn't a go!

Interesting.... Most of Americans don't get 150 mbps line land connect. In America we are stuck in the dark ages when it comes to wireless technology. Hope this will boost internet speeds in most markets.

As a T-Mobile customer i have to say i really need to switch i get no signal at my place, and when i do have full signal in some places, the speed is horrible (SII). I grew up in Sacramento CA where MetroPCS is known as GhettroPCS...


This is like two drunk ugly people hooking up...

vincent said,
As a T-Mobile customer i have to say i really need to switch i get no signal at my place, and when i do have full signal in some places, the speed is horrible (SII). I grew up in Sacramento CA where MetroPCS is known as GhettroPCS...


This is like two drunk ugly people hooking up...

LOL here in south florida it used to be called 'RetroPCS' but it's gotten a lot better, lots of coverage and fast LTE

vincent said,
As a T-Mobile customer i have to say i really need to switch i get no signal at my place, and when i do have full signal in some places, the speed is horrible (SII). I grew up in Sacramento CA where MetroPCS is known as GhettroPCS...

Thanks for sharing


This is like two drunk ugly people hooking up...

vincent said,
As a T-Mobile customer i have to say i really need to switch i get no signal at my place, and when i do have full signal in some places, the speed is horrible (SII). I grew up in Sacramento CA where MetroPCS is known as GhettroPCS...

This is like two drunk ugly people hooking up...

Where I live I only had "edge" data connection and dropped calls, however where I work, got full 3g (faster then sprints). Had to switch.

Rabbit94 said,
that money t-mobile got from at&t for the takeover not going through got put to good use

Yes it is. They still get that money and are using it to improve their 4G and LTE network.

Anthony Tosie said,

Yes it is. They still get that money and are using it to improve their 4G and LTE network.

In addition, I remember reading it was also used towards some of their debt as well.