Topic 'Re: What happens now for us T-Mobile subscribers?' in forum '' - dslreports.com

Re: What happens now for us T-Mobile subscribers?

Fri, 05 Oct 2012 16:18:22 EDT

printscreen posted : I hope nothing changes down here (Puerto Rico) since MetroPCS has no presence here. I went with T-Mobile after the Death Star assimilated Centennial Wireless (of which I was a customer for 9 years) and after it was announced that T-Mobile would not be asimilated as well and hope I will not need to change carrier due to this merger.

Re: What happens now for us T-Mobile subscribers?

Wed, 03 Oct 2012 20:39:20 EDT

buddahbless posted :

said by tanzam75:

. Deutsche Telekom used to own 100% of T-Mobile USA. They're dropping down to 74% of the combined company. The difference of 26% consists of the shares that they're turning over to the shareholders of MetroPCS.

Exactally.. the best way to look at this is "cup half full" approach. Don't be dissuaded by TMO loosing a 26% stake in there company, look at it as TMO now owns 74% of Metro PCS.

Re: What happens now for us T-Mobile subscribers?

Wed, 03 Oct 2012 19:42:12 EDT

tanzam75 posted : The "challenger strategy" appears to focus on growth in prepaid services. Bullet points 4 and 6 both talk about non-contract services.

As of June 30, 2012, T-Mobile had 21.3 million postpaid customers, 5.3 million prepaid customers, and 3.8 million MVNO customers. (2.8 million M2M, but those aren't people, so I won't count them.)

MetroPCS had 9.3 million "subscribers" -- presumably all prepaid.

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If you do the math, the combined company will have 21.3 million postpaid customers, vs. 18.4 prepaid and MVNO.

This is quite a change! T-Mobile has gone from a 2:1 postpaid/prepaid split, to practically 1:1.

Re: What happens now for us T-Mobile subscribers?

Wed, 03 Oct 2012 18:50:08 EDT

tanzam75 posted :

said by dotditdot:

Nothing changes. The same execs running T-mobile will run the new company; T-mobile parent company, Deutsche Telekom, stills own 74% of the company, so nothing will change. This merger was just a convenient way for them get subs, spectrum, and a way to easily list T-mobile US on the market.

Deutsche Telekom is paying $1.5 billion in cash, but MetroPCS had a market cap of $4 billion before the merger was announced. So the majority of the merger price comes in the form of shares, rather than cash.

This is thus a combination of a merger and an acquisition. Deutsche Telekom used to own 100% of T-Mobile USA. They're dropping down to 74% of the combined company. The difference of 26% consists of the shares that they're turning over to the shareholders of MetroPCS.

Re: What happens now for us T-Mobile subscribers?

Wed, 03 Oct 2012 09:56:57 EDT

PastTense posted : If you read the press release:
"The transaction significantly accelerates T-Mobile’s Challenger Strategy and the combined company will be a strong, national competitor by:

Combining T-Mobile and MetroPCS’ complementary spectrum to provide greater network coverage, deeper LTE network deployment and a path to at least 20x20 MHz of 4G LTE in many areas. Existing MetroPCS customers will be migrated to a common LTE-based network as they upgrade their handsets;
Increasing scale, which allows the combined company to secure more compelling handsets, content and applications;
Projecting approximately $6-7 billon (net present value) of cost synergies and additional upside from revenue synergies;
Capitalizing on its leading position as a provider of fast growing no-contract services;
Offering a wider selection of attractive, competitively priced plans to better serve the marketplace, including contract, no-contract monthly, SIM-only, pay-as-you-go and mobile broadband services;
Introducing MetroPCS’ plans and services to a larger number of new areas to complement T-Mobile’s offerings; and
Using its stronger network to advance its B2B offerings and MVNO platform."

Re: What happens now for us T-Mobile subscribers?

Wed, 03 Oct 2012 09:24:37 EDT

jimk posted : Probably nothing. T-Mobile has the bigger network and customer base by far, so everything should stay as is for T-Mobile customers. MetroPCS subscribers will most likely be migrated over to the T-Mobile network, and MetroPCS CDMA will probably be shut down over time. This means eventually MetroPCS customers will need to buy new devices.

MetroPCS does have some LTE coverage, but it is not very fast, so T-Mobile's new LTE network (when it is launched) will be the surviving network. It should be launched next year.

Re: What happens now for us T-Mobile subscribers?

Wed, 03 Oct 2012 09:19:08 EDT

dotditdot posted : Nothing changes. The same execs running T-mobile will run the new company; T-mobile parent company, Deutsche Telekom, stills own 74% of the company, so nothing will change. This merger was just a convenient way for them get subs, spectrum, and a way to easily list T-mobile US on the market.

What happens now for us T-Mobile subscribers?

Wed, 03 Oct 2012 09:14:39 EDT

LoneGreyWolf posted : So what happens to those of us that are with T-Mobile now?

We absolutely love T-Mobile and aren't thrilled with MetroPCS and the other carriers are too expensive.

I also know that my wife has been with T-Mobile for over 10 years.
--
"The woods are lovely, dark, and deep, But I have promises to keep, And miles to go before I sleep, And miles to go before I sleep."
~By Robert Frost~