Deutsche Telekom and MetroPCS Announce Merger
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Top message: This Move Still Makes No Sense by Slammer
Replying to: Re: This Move Still Makes No Sense by dog7149
Not sure why everybody is looking at this as DT looking for a better hold... They want out, period. This is a viable way of doing that without closing the door on the U.S. market should they develop a renewed interest further down the line. Seeing as them selling off their stock is a part of the merger agreement, I see issues further down the line should Metro manage unforseen success with the LTE services, and DT no longer wants to sell. At the same time, that's beyond a long shot. Metro is struggling to deploy LTE over their footprint as it is, and while $2 billion will help that to happen faster in their existing footprint, even the $4 billion ATT just gave TMO wasn't enough to deploy it over TMO's network. So then you have a regional carrier that has bitten off more than it could chew, operating a truly national (and very confusing to the end customer in terms of GSM vs CDMA vs LTE coverage and compitability) coverage map and customer base. From a customer service/retention aspect, this reminds me of the Sprint PCS/Nextel = Sprint merger. They had no clue as to how to handle Nextel customers because their customer service was already atrocious. MetroPCS has similarly atrocious customer service, moreso in the physical locations where customers are treated in a "take it or leave it" fashion because they still think that they offer the best deal in town. Seeing that transition to a welcoming role toward TMO customer should be interesting, even if it is somewhat blunted by the MetroPCS name disappearing, it will still be a huge underlying issue with customer migration/retention.
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