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Deutsche Telekom Mulling MetroPCS Tie-Up for T-Mobile

Article Comments  13  

May 9, 2012, 1:42 PM   by Eric M. Zeman   @phonescooper
updated May 9, 2012, 1:44 PM

T-Mobile USA parent company Deutsche Telekom is considering merging its U.S. operations with pre-paid provider MetroPCS, reports Bloomberg. According to sources familiar with Deutsche Telekom's plans, the company may offer MetroPCS a stock swap in order to gain control of it and then merge the operations of the two firms. Bloomberg's sources also note that Deutsche Telekom is considering an IPO of such a merged entity, an outright sale of T-Mobile USA, and is also holding discussions with other companies. Deutsche Telekom's plans for T-Mobile USA, which has struggled to retain customers in recent quarters, have long garnered industry speculation. The FCC and DoJ blocked Deutsche Telekom's attempt to sell T-Mobile USA to U.S. rival AT&T last year.

more info at Bloomberg »

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Comments

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Axekick

May 11, 2012, 3:30 AM

No surprise

It was recently disclosed that T-Mobile was going to start requiring customers to pay their first months service upfront, then pay for their regular service one month prior to actually using it.

That alone wouldn't concern me but due to their failed attempt to sell to ATT and their fleeing customer base I suspected they were going to become a pre-paid service only.

I'm in my 9th year with them and this is the first time in history no representative in any of their local stores offered me a discounted upgrade on my handset. They usually offer it up without my mentioning it but I recently inquired at three of their local stores and all of them declined, telling me the price I was getting was a really good price Laughing
Axekick said:
It was recently disclosed that T-Mobile was going to start requiring customers to pay their first months service upfront, then pay for their regular service one month prior to actually using it.

That alone wouldn't
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Jellz

May 9, 2012, 2:03 PM

Probably the best

thing that could happen to MetroPCS, and MetroPCS customers Eh?
If T-Mobile brought a better level of customer care to the table you'd be right. Unfortunately I've seen the way T-Mobile treats its prepaid customers. Metro is horrifying and T-Mobile is just shy of that level of service.

As it stands now we as ...
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marufio

May 9, 2012, 8:25 PM

Tmobile UP for sale again.

I wonder who will try to buy it.
MarryTheNight

May 9, 2012, 5:29 PM

I think it could work

Metro customers will just be transferred to T-Mo's "Monthly 4G" plan. The only issue would be the CDMA network. They would have to figure out whether or not they want to keep it running or how long they want to give those customers a so-called grace period before shutting it down. If they actually want to shut it down to begin with. Will it be expensive to convert the CDMA network over to LTE or HSPA+

Advantages to this is that T-Mo would get a headstart on LTE which would be great and acquire some AWS spectrum in the process. It could work but it's tricky.
Jacobsladder375

May 9, 2012, 2:34 PM

CDMA VS GSM

Wonder how can they merge 2 different technologies in 1?
MetroPCS is a small company. T-Mobile would just change the current CDMA equipment and install HSPA/LTE equipment.

Plus, MetroPCS uses PCS/AWS for their spectrum, and is currently launching LTE using AWS. This is exactly what T-Mobile is doing.
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Not really. It's about spectrum licenses and customers. T-Mobile can turn around and use MetroPCS's spectrum for their own network easy-peasy, and they get a boost from MetroPCS's almost 10 million customers (as long as they don't choose to jump ship)...
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