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Topic: Mobility

MetroPCS confirms Deutsche Telekom, T-Mobile USA talks

Summary: Deutsche Telekom is in talks to merge T-Mobile USA with MetroPCS, but would this merger really help anyone?

Rachel King

By for Between the Lines |

Deutsche Telekom is in talks to buy MetroPCS and merge it with the German telecommuncations company's U.S. arm, T-Mobile USA.

MetroPCS issued the following statement on Tuesday:

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.

According to Bloomberg, Deutsche Telekom wants to be able to scale out T-Mobile so it can better compete with Verizon Wireless and T-Mobile's previous bidder, AT&T.

T-Mobile is currently the nation's fourth largest wireless provider behind Verizon, AT&T and Sprint. MetroPCS comes in fifth.

However, it's questionable how much such a merger would benefit anyone. From one perspective, T-Mobile would have a slightly extended reach nationwide with a new arm of no-contract mobile customers with the potential of also reaching smaller markets.

The no-contract consumer base could be a useful strategy for T-Mobile in positioning itself as a stronger alternative to the top three wireless providers.

Still, instead of feeling like a win-win situation, it just feels like a temporary band-aid for two flailing nationwide carriers.

Topics: Mobility, 4G, Smartphones, Telcos

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8 comments
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  • T-mobile is good value.

    I just switched my family to T-mobile after giving up our unlimited data plans and we are saving a ton. We used to pay Verizon $210 a month and now we're at $120 for unlimited data on T-mobile for three people. The drawbacks being that T-mobile doesn't have LTE (only HPSA+) and the $120 rate (value plan) is only offered if you bring your own phone or buy a unsubsidised phone from them or Ebay. Even so, we'll end up saving around $1500 over two years.
    Adamsmark
    Reply Vote

    • T-Mobile is not a Good Value... It is a GREAT/FANTASTIC Value

      Just had to ad my 2 cents worth there.... Adam, I have been with them 10 years for my phone and was with Verizon for my mobile internet for the laptop for two years... They were, in my opinion, the absolute PITS... they charged more, had slow internet, and the customer service was almost as bad as Dell Computer Customer Service. ( NOW that is BAD)
      Joedidley
      Reply Vote

  • hey fcc

    If you approve the merger, will this mean cheaper "obama phones" for the taxpayers to subsidize for the delightful trash known as the poor?
    TrishaDishaWarEagle
    Reply Vote

    • re: hey fcc

      Trisha, I think that would be better than a "Rmoney phone" that only works for 53% of the population, roams only in Switzerland, Bermuda & the Caymans and screws the other 47% of the people.
      Sudi Nim
      Reply Vote

  • HMM WHY

    in all honesty i can understand if they were going to buy the company and run it as a stand alone company but if they feel that can merge them with T mobile i dont see how that would work being that METRO is working on a whole different network band ; unless they are going to make the Metro LTE WORK WITH T mobile LTE. if not i feel it would be a bad investment.
    William Jbara
    Reply Vote

  • T-Mobile VALUE

    I really don't understand how T-Mobile can be in 4 place when they have the best prices and the very best customer service. I live in the mountains of NC and have NO TROUBLE WITH THE SERVICE. I cannot recommend them highly enough. They are the best of the best.
    Oh and I think bringing politics into this is crude... for both sides... Sorry folks... that is just the way I feel.
    Joedidley
    Reply Vote

    • because Tmobile isnt that great away from bigger cities

      In many areas, Tmobile does not have great service. I had to drop my old company phone because travelling, i would lose my Tmobile signal 30-40% of the time. Unacceptable for a business phone.

      And it may work in the mountains of NC, but when I was in Charlotte earlier this year, many of my clients complained about service in and around town.
      tiderulz
      Reply Vote

  • Subscribers, Spectrum, Profit and Human Needs.

    With most mergers, jobs are lost in order to reduce redundancies and equity is converted into debt to finance the purchase. Also, as T-Mobile uses GSM and MetroPCS uses CDMA, their voice cellular technologies are not compatible.

    With respect to 4G LTE, only about a million of MetroPCS's ten million customers use their 4G LTE service. While 4G LTE holds much future promise, it is currently not the reality for most current customers.

    I have been a MetroPCS customer for over a decade and don't see myself or other MetroPCS customers benefiting from MetroPCS's acquisition by German company, Deutsche Telekom who would then merge MetroPCS with T-Mobile. Industry consolidation - a reduction in the number of competitors, will not help consumers.

    This is a bad move and appears consumer unfriendly.
    David Elliott Lewis
    Reply Vote
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