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T-Mobile, MetroPCS Are Now One Stronger Carrier
T-Mobile, MetroPCS Are Now One Stronger Carrier

By Jennifer LeClaire
May 1, 2013 12:17PM

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"T-Mobile really needs to beef up their ability to compete. This merger will help them do that," said analyst Jeff Kagan. "T-Mobile is stronger with MetroPCS. Maybe, if the new, larger T-Mobile can really start selling again they will start to recover. The marketplace needs strong competitors. Will this be enough to make a real difference? We'll have to watch and see."
 


The fourth-largest U.S. wireless carrier just got a little larger. T-Mobile's $1.5 billion acquisition of MetroPCS is final. And T-Mobile officials celebrated by ringing the opening bell at the New York Stock Exchange.

T-Mobile's vision is to "bring wireless consumers exciting new choices while delivering an exceptional experience." The combined company started trading on the NYSE on Wednesday under the ticker symbol TMUS.

"The combination of T-Mobile and MetroPCS creates an even stronger disruptive force in the U.S. wireless market," said John Legere, president and CEO of T-Mobile US. He added that, under the banner of the "uncarrier," the company would be "tearing up the old playbook and rewriting the rules of wireless to benefit consumers."

No Big Deal

Combined results for the two companies in 2012 would have reflected $24.8 billion of revenue. The combined company has 43 million subscribers as of March 31, two strong brands, and 70,000 retail locations. The two brands offer a wider choice of wireless devices, including Apple's iPhone, without annual contracts.

Jeff Kagan, a telecom analyst in Atlanta, said the acquisition was good news for T-Mobile, since the company would now be a stronger competitor. But he does not believe the deal necessarily will make a big difference to the other carriers.

"T-Mobile really needs to beef up their ability to compete. This merger will help them do that," Kagan told us. "T-Mobile is stronger with MetroPCS. Maybe, if the new, larger T-Mobile can really start selling again they will start to recover.

"The marketplace needs strong competitors. Will this be enough to make a real difference? We'll have to watch and see."

Serving Customers Better

The Board of Directors of the combined company will have 11 members, including two directors of MetroPCS who will continue with the combined company. Tim Hottges, deputy CEO and CFO of Deutsche Telekom, will serve as chairman of the board.

"By uniting T-Mobile and MetroPCS, we have created a dynamic new player in the wireless industry that has the right strategy and management team in place to compete successfully in today's marketplace," Hottges said.

The combined company's network coverage includes 301 million people, of which 283 million are covered by owned network. About 228 million are covered with 4G capability, and 200 million are expected to be covered with 4G LTE by the end of the year.

Combining the two companies' spectrum provides a path to at least 20+20 MHz of 4G LTE in approximately 90 percent of the top 25 metro areas in the U.S. for 2014 and beyond. There are also projected cost synergies of $6 billion to $7 billion, with additional potential upside from the focused geographic expansion of the MetroPCS brand.
 

Tell Us What You Think
Comment:

Name:

pageplushickorync:

Posted: 2013-05-01 @ 11:06pm PT
So if I have a bad ESN w/ Verizon on an iPhone I flash it to Metro or Cricket- Does this mean that now I can just take it to TMO- good OR bad, CDMA OR gsm?

leland:

Posted: 2013-05-01 @ 1:35pm PT
Customer service is key and T-Mobile does not have it.



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