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T-Mobile reportedly in merger talks with MetroPCS

Discussion in 'Wireless News' started by ComicalMoodyDan, Sep 22, 2009.

  1. ComicalMoodyDan

    ComicalMoodyDan Gold Senior Member
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    Deutsche Telekom reportedly in merger talks with MetroPCS
    By Nick Wood , Total Telecom
    Tuesday 22 September 2009

    Potential MetroPCS tie-up could be worth $5bn as speculation continues to swirl around T-Mobile USA, FT reports.

    Deutsche Telekom is in talks over a possible merger between its T-Mobile USA operation and regional prepaid rival MetroPCS.

    The FT's Alphaville blog cited "usually knowledgeable sources" who claimed that the two operators are holding discussions about a tie-up that could be worth as much as $5 billion.

    Combining T-Mobile USA's GSM network with MetroPCS's CDMA network would likely be problematic; however, it is understood that Deutsche Telekom is looking to strengthen its market position ahead of the adoption of the next generation of mobile technology, in the hope that a move to LTE will bring about the convergence of the two standards.

    Both companies have struggled amid the downturn and rising competition in the U.S. mobile sector.

    Bigger rivals AT&T and Verizon Wireless have been taking high-end market share from T-Mobile.

    The telco giants have also been driving their low-cost prepaid offerings in a bid to attract increasingly cash-strapped consumers looking to save money on mobile services – a move which has impacted the recent performance of MetroPCS.

    T-Mobile USA is at the centre of speculation over consolidation in the U.S. mobile market.

    Deutsche Telekom last week reportedly hired Deutsche Bank to study the possibility of making a multi-billion dollar bid for Sprint Nextel, although sources denied the two operators were in merger talks.

    This followed the recent announcement that the German incumbent will merge its T-Mobile UK operation with France Telecom's local Orange unit.

    Meanwhile T-Mobile's Dallas-based rival MetroPCS has long been viewed as a potential takeover target, and has also been linked as a possible merger partner for San Diego-based Leap Wireless.

    Indeed, the latter rejected a buyout offer from MetroPCS in 2007 on grounds that it was too low, but since then the two operators have seen their share prices plummet as larger rivals have ramped up their efforts to capture the growing prepaid market.

    A combination of MetroPCS and Leap Wireless would create a mobile provider with a nationwide network footprint and more than 11 million customers.

    Total Telecom - Deutsche Telekom reportedly in merger talks with MetroPCS
     
    #1 ComicalMoodyDan, Sep 22, 2009
  2. Telekom

    Telekom Bronze Senior Member
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    T-Mobile does not need the headache of a CDMA carrier. It was a bad idea with Sprint and it's doubly bad with Metro PCS. If they want to do it right buy AT&T. It'd improve AT&T 1000%. Not only they could assume the stock symbol T from AT&T.
     
    #2 Telekom, Sep 22, 2009
  3. M in LA

    M in LA Mobile 28 Years Plus
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    I agree. :thumb:
     
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    #3 M in LA, Sep 22, 2009
  4. larry

    larry Sprint loyalist and former mod
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    All these rumors that keep swirling around are becoming less believable by the day. First AT&T was in merger talks with Leap. Then T-Mobile is all set to make a bid on Sprint and the next week it becomes Metro PCS? What's next?
     
    #4 larry, Sep 22, 2009
  5. Yankees368

    Yankees368 Compulsive Signal Checker
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    Southern linc bids for Sprints entire iden network?
     
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    #5 Yankees368, Sep 23, 2009
  6. larry

    larry Sprint loyalist and former mod
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    I would be ok with that. :)
     
    #6 larry, Sep 23, 2009
  7. Fire14

    Fire14 Easy,Cheap & Sleazy
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    It is amazing how the rumors keep flying about who may buy whom & maybe T-Mobile will be looking at Metro and AT&T is looking at Leap this way the 2 won't merge together?

    As for T-Mobile buying a CDMA carrier, I think the difference here is Metro has a smaller footprint of CDMA network so it would be cheaper & alot easier for T-Mobile to convert the area's to GSM.
     
    #7 Fire14, Sep 23, 2009
  8. larry

    larry Sprint loyalist and former mod
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    Yep not to mention no iDEN to deal with. It would be a much easier approval process with the feds as well.
     
    #8 larry, Sep 23, 2009
  9. bobolito

    bobolito Diamond Senior Member
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    LMAO! I don't think DT has the cash to buy a behemoth like AT&T. That's like saying Sprint should buy Verizon. LOL!

    But T-Mobile shouldn't be looking to merge with CDMA carriers, especially MetroPCS which has the potential to grow into a good competitor. I rather MetroPCS and Leap to merge. I think T-Mobile wants to position themselves to grow quick and the only way to do that is to buy other carriers.
     
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    #9 bobolito, Sep 23, 2009
  10. Yankees368

    Yankees368 Compulsive Signal Checker
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    T-Mobile has absolutely no need to buy MetroPCS. Metro only covers rather large cities, such as LA and NYC, both of which T-Mobile cover VERY well. T-mobile needs to expand into other areas, not in areas where they already provide excellent service.
     
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    #10 Yankees368, Sep 23, 2009
  11. spleck

    spleck Tool
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    MetroPCS and Leap both have large AWS licenses covering much more than their current markets, making them more valuable than just their coverage suggests. MetroPCS has also said they plan to start deploying LTE next year. Another rumor suggested T-Mobile might be looking to invest in ClearWire.

    This all suggests to me that T-Mobile (DT) is shopping around to improve their standing in the more lucrative data market to go along with their aggressive 3G/HSPA rollout. They could keep MetroPCS on CDMA, and share LTE between T-Mobile and MetroPCS.
     
    #11 spleck, Sep 23, 2009
  12. Yugopro

    Yugopro Senior Member
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    Could T-Mobile buy Metro, sell off the CDMA network, and keep the unused spectrum for expansion? I think I read that Metro has a lot of unused potential. Does Metro have any 700-800 or do they have 1700?
     
    #12 Yugopro, Sep 23, 2009
    Last edited: Sep 23, 2009
  13. cheddar

    cheddar Senior Member
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    They've got some of both. I'm not sure how much. Probably north worth buying unless you were going to run the network and convert it to LTE.
     
    #13 cheddar, Sep 24, 2009
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