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Deutsche Telekom Mulling MetroPCS Tie-Up for T-Mobile

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May 9, 2012, 2:34 PM
Wonder how can they merge 2 different technologies in 1?

May 9, 2012, 2:36 PM
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.

It's not like T-Mobile buying Sprint, and have to change over all the customers/network. That is a different story, and would take awhile.

May 9, 2012, 4:32 PM

May 9, 2012, 3:01 PM
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).

May 9, 2012, 4:49 PM
Yeah, but considering that MetroPCS is a prepaid carrier, some of their customers may not meet T-Mobile's credit standards. Of course, T-Mobile can transition those folks to its own prepaid service, or it can simply keep them on the CDMA network for now until it's shut down. By then, most will either leave on their own or transition to a T-Mobile prepaid or postpaid plan.

May 9, 2012, 4:50 PM
It's also about long run cost - benefit analysis. Network conversion for the current Metro PCS network may be expensive, even with the small footprint that Metro PCS has. Basically, your looking at the acquisition cost, network conversion costs, and the costs to provide early upgrade or new devices to Metro PCS customers as you complete network conversion. Not sure if it's worth it to T-Mobile. When Dan Hesse was trying to purchase Metro PCS , I was scratching my head about the deal. I was glad when the board stopped the purchase, because Metro really wasn't going to bring anything to the table and that was with a network in common. Not sure this is a good plan for T-Mo

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