News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
GET RECOGNIZED
Let an ISACA® certification elevate your career.
Register today and save
You are here: Home / Mobile Tech / T-Mobile-MetroPCS Deal Heads to Vote
DDoS Protection Powered By Verisign
MetroPCS Says T-Mobile Deal Now in Shareholders' Hands
MetroPCS Says T-Mobile Deal Now in Shareholders' Hands
By Adam Dickter / NewsFactor Network Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
PUBLISHED:
MARCH
06
2013



Will it be called T-PCS, or Metro-Mobile? Or something else completely?

The fourth- and fifth-largest U.S. wireless carriers, T-Mobile and no-contract-specializing MetroPCS, are one step closer to closing a merger deal this week after a deadline for objections by government regulators passed without incident.

Now It's Up to Shareholders

The deal is now subject to approval by shareholders of MetroPCS, who will cast their votes on the matter at a special meeting on April 12, open to those who have a stake as of the close of business on March 11.

"The MetroPCS board unanimously recommends that stockholders vote their shares FOR all of the proposals relating to the proposed combination with T-Mobile," the company said in a statement Wednesday, noting that a failure to vote or an abstention constitutes a no vote. "If stockholders vote against the proposed combination, there is no assurance that MetroPCS will be able to deliver the same or better stockholder value."

T-Mobile is a wholly owned subsidiary of Deutsche Telekom AG, which has been trying to dump T-Mobile for years.

The Hart-Scott-Rodino Antitrust Improvements Act, signed by President Gerald Ford in 1976, requires detailed filings with both the Federal Trade Commission and the Department of Justice and a 30-day waiting period (15 days if it's an all-cash deal) by parties in merger agreements and to allow the impact on consumers to be assessed.

It was during that period that the Justice Department objected to AT&T's planned $39 billion acquisition of T-Mobile in 2011, on grounds that it would hurt competition, which eventually killed the deal, resulting in a $4 billion breakup fee for AT&T, not to mention an embarrassing stumble.

Because Dallas-based MetroPCS is 10 times smaller than AT&T with 9.5 million subscribers, the deal appears to the feds to be less threatening to consumer choice.

"The AT&T-T-Mobile [deal] was not allowed by regulators because it would merge two of the top four players," said wireless industry commentator and consultant Jeff Kagan.

"T-Mobile and MetroPCS, however, may be approved since they are smaller players."

If approved, Kagan said, the merger would strengthen both players, but it's unclear if it would boost them enough to help them substantially gain ground in the market.

No Powerhouses

"T Mobile is not modernized to 4G speeds like Verizon and AT&T or even Sprint," Kagan said. "MetroPCS operates their own network and do a good job, but they are no 4G powerhouse either."

In short, Kagan told us, the likely approved merger will not significantly change the marketplace.

"Customers will likely be able to stay on their existing plans for now, and have to make changes when they upgrade their phones and renew their plans," he said. "So the period of instability hopefully won't be that tough."

The MetroPCS statement notes that in addition to shareholder approval, the deal is subject to "certain other regulatory approvals and customary closing conditions."

Tell Us What You Think
Comment:

Name:

Like Us on FacebookFollow Us on Twitter
TOP STORIES NOW
MAY BE OF INTEREST
Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.
MORE IN MOBILE TECH
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Russian Gang with Stolen IDs Hacks Hosting Company
In August, a Russian cyber gang obtained what researchers called “the largest cache of stolen data." Now, those hackers may be putting their ill-gotten gains to criminal use.
 
Dairy Queen Latest Retailer To Report Hack
Known for its hot fries and soft-serve ice cream, Dairy Queen just made cyber history as the latest victim of a hack attack. The fast food chain said that customer data at some stores may be at risk.
 
Lessons from the JPMorgan Chase Cyberattack
JPMorgan Chase is investigating a likely cyberattack. The banking giant is cooperating with law enforcement, including the FBI, to understand what data hackers may have obtained.
 

Enterprise Hardware Spotlight
AMD's New FX Series CPU Breaks Processing Speed Record
The new FX-8370 processor from Advanced Micro Devices has set a record for silicon processor speed, the company announced. Overclocked, the eight-core chip was measured at 8722.78 MHz.
 
Intel Intros Lightning-Fast PC Processors
Call it extreme. Intel just took the covers off its first-ever eight-core desktop processor, which is aimed at hardcore power users who expect more than the status quo from their computers.
 
HP Previews ProLiant Gen9 Data Center Servers
Because traditional data center and server architectures are “constraints” on businesses, HP is releasing new servers aimed at faster, simpler and more cost-effective delivery of computing services.
 

Mobile Technology Spotlight
Rumor Mill Puts Mobile Wallet in iPhone 6
Apple is moving toward the mobile wallet world with its next iPhone. The tech giant has partnered with retailers, banks and major payment networks to make it happen, according to Bloomberg.
 
Will iPhone Finally Catch Up with NFC Mobile Payment Ability?
Apple's latest version of the iPhone may have a mobile wallet to pay for purchases with a tap of the phone. The iPhone 6 reportedly is equipped with near-field communication (NFC) technology.
 
Visual Search To Shop: Gimmick or Game Changing?
Imagine using your phone to snap a photo of the cool pair of sunglasses your friend is wearing and instantly receiving a slew of information about the shades along with a link to order them.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech | Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.