CNBC is exclusively reporting that Sprint was literally inches away from an $8 billion deal to acquire MetroPCS last Wednesday -- but Sprint's board ultimately voted against the plan. According to anonymous sources, both companies were literally hours away from announcing the deal after months of negotiations, but the board voted down the deal for unknown reasons despite CEO Hesse's approval. The scrapped deal would have given MetroPCS one third ownership of the combined company and a 30% premium over the price of MetroPCS shares, with Sprint gaining MetroPCS' 9.35 million subscribers.
Except that MetroPCS runs a CDMA network and Sprint and MetroPCS devices already roam on each others networks. These aren't completely non compatible technologies. They are much alike.
And Google notified them last week that Google was dumping Clearwire stock. Maybe the Board of Directors realized that Sprint may need that cash to bail out Clearwire once again and that they couldn't do that and buy MetroPCS at the same time.
The way it sounds, there wouldn't be much cash involved anyway. Sprint would give out shares to MetroPCS who'd now own 30% of Sprint - that's a lot of paper-money right there.
Either way- all these cell mergers should be stopped at any cost. This is already an industry where competition is almost non-existant and it's almost impossible for new players to enter the market - the last thing we (consumers) need is mergers.
ATT and Verizon are the top 2. Sprint buying this MetroPCS 9.35mil customers wouldnt have made that much of a dent and probably would have passed with minimal whining. Smaller companies growing is good for competition and generally allowed. ATT buying T-mobile was a different story it made a top company grow by too much and lessened competitiveness and certainly would have hurt consumers(pricing) and competitors as well. I would'nt expect Verizon or ATT do much of anything as their on the DOJ's radar.
Metro PCS Customers are lucky that the deal failed.
MetroPCS subscribers would have gotten a hosing when Sprint announced no more flat rate plans. Subscribers would have probably suffered the same old wireless crapola. Yes Dorthy you can keep your grandfathered MetroPCS Plan but if you want to make any changes or purchase a compatible handset you will have to go to a measured rate plan. Remember we are not Burger King, you cannot have it your way and if you do not like it you can go F#*K yourself.
Some of the frequencies used by MetroPCS do not match the frequencies that Sprint uses and all subscribers would probably have to eventually purchase new handsets. Sprint management probably realized that as soon as the merger was announced the screaming by MetroPCS subscribers would begin.
Re: Metro PCS Customers are lucky that the deal failed.
much of the networks work with each other. Its in very rare areas they don't. Sprint only needed METRO to keep their customer count up and to gain more $$$ long term with prepaid customers.
And Virgin does have unlimited plans; but limits data. Metro though already has an LTE network that is being built and used. while Sprint has pretty much nothing and ZERO cash to do anything major.
In my opinion. T-Mo needs spectrum for LTE, Metro PCS has LTE in a lot of places. MetroPCS CDMA footprint isn't large, T-Mobile has a large GSM/HSPA+ footprint.
Do they? Just how much spectrum does MetroPCS have for LTE. How much spectrum is their current LTE network using? I thought MetroPCS LTE was kind of a joke?
That's a lot of money to spend to get the type of customers Metro has been pandering to. I doubt if any of their current customers can qualify for a contract with any cell carrier.
Nice to see racism is alive and well even on a site like this. Yeah, because everyone knows just because someone has a different color skin they must all be poor and on a prepaid phone because they can't get a postpaid one. Not only is that display your racism, it also displays your ignorance: only those with the absolute worst credit cannot get a postpaid cell phone...virtually all carriers will allow you to get one if you put up a deposit (typically of $150-$250, depending upon the phone and plan). Yes, that is a lot of money but considering you have to pay a non discounted price for a phone on prepaid plans the difference is minimal.
Nice to see racism is alive and well even on a site like this. Yeah, because everyone knows just because someone has a different color skin they must all be poor and on a prepaid phone because they can't get a postpaid one. Not only is that display your racism, it also displays your ignorance: only those with the absolute worst credit cannot get a postpaid cell phone...virtually all carriers will allow you to get one if you put up a deposit (typically of $150-$250, depending upon the phone and plan). Yes, that is a lot of money but considering you have to pay a non discounted price for a phone on prepaid plans the difference is minimal.
um, he was just playing a MetroPCS commercial. The people in it represent the customer MetroPCS wants...how is he racist for just playing their own commercial. If I play a Mcdonald's commercial with black people in it that makes me racist?
It was racist in how his remarks were "I doubt if any of their current customers can qualify for a contract with any cell carrier" suggesting the demographics portrayed in the commercial are a bad credit risk. While I have a white finance professor that has a prepaid phone, is he a bad credit risk? NO he simply can't justify the cost of a subsidized monthly contract phone with how little he calls.
He was telling the truth. MetroPcs caters to that particular market. In many areas, boost mobile does the same. It's not being racist. It's knowing your market!
Although I would admit there advertisement sucks, it's beyond ignorant to say that those customers who go to MetroPCS are those who don't qualify for a contract.
What I actually find hysterical is how people who use AT&T, Verizon, and T-mobile and pay over $60 per month on services yet don't even get unlimited data, still are under minutes that they track, and are locked into a two year contract because "those who can afford and qualify for postpaid" cannot even afford the cost of the phone up front most of the time. It's a joke.
I live in Miami so MetroPCS is a excellent option for me, I do travel, and my phone has worked from Miami, to Lewiston Maine, and as far west as San Antonio, Texas. I am more than likely roaming when I do travel, but at the end of the day I don't get any roaming charges and I still pay my $45 LTE plan. In short I am taking advantage of the same great coverage you postpaid customers enjoy without paying a dime really into it.
AT&T keeps sending me promos saying I qualify for up to 4+ lines and they go straight to my shredder.
Maybe this country needs to think twice about what they are blowing money on before saying ignorant comments like "I doubt if any of their current customers can qualify for a contract with any cell carrier."
you have it so completely wrong, I guess that's why MetroPOS still adds customers..
You don't get the same coverage as postpaid customers for free. Sprint native coverage is decidedly prepaid coverage but even lower than that, 1X. Sprint postpaid customers get free Verizon roaming.
T-Mobile's Monthly 4G plans are absolutely worth every penny over MetroPOS's garbage LTE and 1X network "unlimited" offerings.
AT&T MVNO's offer $45-50 unlimited plans
Sprint's Boost Mobile has unlimited plans for $55 but not recommended due to their slow 3G speeds...
etc.
MetroPCS is a joke, so is the native coverage, LTE speeds, and customer service. The plans are not the best, especially with all of those fees you get charged for stuff you get done for free with Sprint/T-Mobile/Verizon/AT&T.
"You don't get the same coverage as postpaid customers for free." I guess I don't give a shit because my phone still works for the places I go and then some. Maybe some people just don't have good coverage in there area and the MetroPCS isn't a option because they don't even exist in that market. Regardless my service works and it works well.
T-mobile has a good network but I still get a better price with MetroPCS and it serves my needs. I don't agree with T-mobile's capped service, nor do I agree with paying 104.99 per month for service, and this is the value plans. Yes I get slower speeds on MetroPCS LTE, but my service is unlimited at $45.
Customer service can be a joke sometimes but these days it seems that's just across the board. At least my service is more stable and consistant than the entire 4G LTE network going offline thanks to the holy grail Verzion.
Enjoy paying your dues, I think MetroPCS is a great service for the price I pay and options I have. I would hate to see them go the same route the big three went.
Yes cause has we all know these "Execs" can't see past the $100 bills in there pockets and will do mostly dumb things that hurt them in the long run save for Apple Computer it seems
USCC has lost subscribers for seven straight quarters and has dropped from being the 5th largest carrier to seventh. It seems like USCC is already doing a good job of ruining USCC...
USCC has lost subscribers for seven straight quarters and has dropped from being the 5th largest carrier to seventh. It seems like USCC is already doing a good job of ruining USCC...
US Cellular could give Sprint a good boost in less populated areas, which has always been US Cellulars strong point, and Sprints sore spot. Markets like northern new england and out in the mid west.
Only up until recently, going outside of USCC territory meant restrictions and weird policies. So it was no good for people who did any sort of traveling or vacationing. The plans they have now though are better and give EVDO roaming on Verizon once you get out of USCC's areas. So at least they have "nationwide" coverage without gimmicks.
USCC has lost subscribers for seven straight quarters and has dropped from being the 5th largest carrier to seventh. It seems like USCC is already doing a good job of ruining USCC...
US Cellular could give Sprint a good boost in less populated areas, which has always been US Cellulars strong point, and Sprints sore spot. Markets like northern new england and out in the mid west.
Yep. Me personally, I think it'd be a good matching. Maybe even invite C-Spire to the party too. However, the powers that be don't appear to want to go that route...
Metro has its pros and cons, but isnt all that bad.
I agree that Metro's target customer base are people with limited money and of any race. But Metro is also picking up customers like myself that can afford paying $100+ for unlimited, but choose not to. I have a Samsung Admire which isn't the fastest phone in the world, but it does have at lease a 800Mhz processor, Android 2.3, and I can tether it on 1x or 3G while using VPN with no known data caps. I get all this for $50 a month and it feels even better that my carrier isn't watching my consumption or deploying software to scan for mobile browser vs. desktop browser.
The timing is REALLY BAD (election year) for any kind of thought, let alone action for mergers in telecom or another industry where consumers actually can do something to derail consolidation or anti-consumer/competition moves by even the small fry companies. Telecom is no oil company, refinery or gas station.