MetroPCS Makes Offer On Leap Wireless
My take on the merger.
They are obviously two low cost operators, which is a good thing because they can offer services at better rates then some of the others. If they combine, they would have spectrum assets covering almost all the top 200 largest markets. There are little overlapping in the spectrum and tower licenses but not a lot as PCS would go on the larger metropolitan areas and Leap goes over the not noticeable or under penetrated or under desirable markets. This would obviously create a nationwide network going up against the bigger companies, but the good thing is, this company (if approved) would have a low cost structure and could offer better prices and have a very good roaming service agreement or agreements throughout the industry. Obviously, these...
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The only problem with that is the reason their a lower cost company (at least in the case of Metro) is because they provide low quality service. They overload all their towers with customers because they only use half as many towers as the bigger companies to cover the same area. I just don't see how that kind of business model can be accepted on a large scale. Especially in the case of businesses, you have to have reliable coverage and not have to wait for an open circuit every time you want to make a call.
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lufrebent said:
The only problem with that is the reason their a lower cost company (at least in the case of Metro) is because they provide low quality service. They overload all their towers with customers because they only use half as many towers as the bigger companies to cover the same area. I just don't see how that kind of business model can be accepted on a large scale. Especially in the case of businesses, you have to have reliable coverage and not have to wait for an open circuit every time you want to make a call.
Seems like a Metro-Leap carrier would be more of a threat to T-Mobile than anyone else. They'd undercut the price undercutter.
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The most important fact that because of this merger allows for $2.5 billion in synergies which will allow the company to use that savings to their benefit to further streamline and increase efficiency at their operations.
They could very well build out more towers in many areas or they think it is enough. They are doing, as it is a good job of going after under penetrated and undesirable markets and with MPCS’ metropolitan footprint, it allows to target those customers a bit better than the other carriers. By joining their footprint, it will become a very strong one going into the future. Companies could be looking at the combined company as a purchase or a buyout because of their niche offerings in the areas they serve.
During the Au...
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They could very well build out more towers in many areas or they think it is enough. They are doing, as it is a good job of going after under penetrated and undesirable markets and with MPCS’ metropolitan footprint, it allows to target those customers a bit better than the other carriers. By joining their footprint, it will become a very strong one going into the future. Companies could be looking at the combined company as a purchase or a buyout because of their niche offerings in the areas they serve.
During the Au...
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nextel18, don't take this the wrong way... because I like you and your posts...
... but you like to use the word "synergies" an aful lot. 😉
... but you like to use the word "synergies" an aful lot. 😉
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Well in my financial world, when savings are brought into play or mentioned the term is synergies. What other word is better?
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I am sure there isn't a better word. You really know your stuff. I am just saying that it's funny. Every time I see the word... it's you posting it.
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SprintPCSGuy said:
nextel18, don't take this the wrong way... because I like you and your posts...
... but you like to use the word "synergies" an aful lot. 😉
'Synergies' is a sort of vague word in corporate-speak that translates to 'mergers are good'. 🤣
Unfortunately, many of them are not good mergers, 'synergies' or no. Sprint-Nextel would be a recent example of that, ditto Daimler-Chrysler. 😲
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