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T-Mobile, MetroPCS Merger Very Close
Could Be Announced This Week
by Karl Bode Tuesday 02-Oct-2012 tags: competition · wireless · bundles · consumers · wireless
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Fresh off of their disastrous failed merger attempt with AT&T, T-Mobile owners Deutsche Telekom have a far more modest merger target: MetroPCS. Those ever-busy "people with knowledge of the matter" tell Bloomberg News andReuters that the deal is close to being announced, with Deutsche Telekom’s supervisory board scheduled to meet in Bonn tomorrow to approve the deal. MetroPCS has been shopping itself around for a sale for some time, and was a hair's breadth away from being acquired by Sprint earlier this year, until the Sprint board nixed the deal at the last second. Rumors of a T-Mobile and MetroPCS deal have been floating around since early this year, with Deutsche Telekom insisting such a deal wasn't necessary.

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djdanska
Rudie32
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Might as well.

Last i knew, MetroPcs has 700Mhz, 1900mhz/pcs, and aws spectrum. Granted not a lot, but it still will help t-mobile with the refarming. Plus MetroPcs has an LTE network.

At&t converted it's cdma alltel territory it acquired, so this should be that much different. Plus, t-mobile can refarm MetroPcs spectrum to help it's current PCS/AWS refarming. (putting HSPA+ on pcs) while possibly keeping current metropcs customers running until they get new phones.
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elefante72

join:2010-12-03
East Amherst, NY

Re: Might as well.

TMO needed for AWS spectrum in the NE which Verizon outbid them. MetroPCS has the NE AWS spectrum so they are good. In addition AT&T was trying to have new AWS bands defined to squeeze them, so this is a perfect spectrum match.
iansltx

join:2007-02-19
Golden, CO
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The kicker here is that MetroPCS could migrate off of CDMA pretty quickly if it needed to (e.g. when merging with TMo). The company already has one VoLTE-capable phone and they're pushing hard for more. Of course it might be cheaper to just give everyone on MetroPCS an HSPA capable phone comparable to what they have now on MetroPCS, compared to getting VoLTE running on TMo's entire network on a quick schedule. But it's an option.

As for spectrum, TMo and MetroPCS fit perfectly: PCS and AWS. The key for T-Mobile will be shutting down CDMA on AWS quickly so they can use all of MetroPCS's spectrum there for LTE.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: Might as well.

TMO seems to be pretty good at refarming the spectrum. I don't think it would take them long as long as they'd set a plan and make it soild and just roll with it. Even if it means moving those customers over to TMO handsets. TMO could give out free phones.
iansltx

join:2007-02-19
Golden, CO
kudos:2

Re: Might as well.

Free phones cost money though. Even if you're replacing MetroPCS quality phones.
jagged

join:2003-07-01
Boynton Beach, FL

Good

Usually not a fan of mergers that eliminate competitiveness but MetroPCS is struggling as it is and Tmo USA has competitive plans and pricing

Linklist
Premium
join:2002-03-03
Longport, NJ
kudos:5

Re: Good

said by jagged:

Usually not a fan of mergers that eliminate competitiveness but MetroPCS is struggling as it is and Tmo USA has competitive plans and pricing

TMO has to grow or die. And in the US market, where maybe 3 national carriers is all that can make it financially, Sprint & TMO are fighting to be that 3rd carrier. Which one will be the survivor?
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hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: Good

You don't really just need 3 providers. You can keep a 4th and the forth can be the discount provider that has no contracts, offers customers discounts for bringing their own phones, including the iPhone and actually giving directions on how to set it up. Who ever is in number 4 will be that carrier. But with Sprint itself it is going to need to change the way it does busienss. by them raising their prices even after they cried about not being able to compete against TMO-USA/AT&T Mobility. And now they're telling people they are considering charging extra for their LTE network. That will NOT keep people happy, even regardless if they offer unlimited data. What is next with them, overages and shared plans? I wouldn't doubt it at this point, especially when they have a HUGE network build out to pay for.
tanzam75

join:2012-07-19

Re: Good

Sprint is designed as a growth company, like all of Craig McCaw's other companies.

The problem is that the wireless industry is starting to saturate. Once the growth in data plans ends, the players will only be able to grow by taking customers from each other.

At that point, Sprint's lack of profitability and high debt load will really put it at a disadvantage against the other national carriers. This is especially true with an enlarged T-Mobile.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: Good

And that is their problem- money. Sprint will run out of it and fast if they don't find something to get customers. the iPhone will only last for so long. Once TMO starts rolling out their HSPA fully they'll be taking iPhone5 customers from AT&T and alike. People will be shopping on price and nobody but TMO is set up for that. Sprint think's they're better than TMO when it comes to pricing, when in reality, they're NOT a ATT Mobility or CellCo style of company.

Sprint will end up being an MVNOE and moving on that side. It would make sense for them with all of the MVNOs they currently have using their network. The only other option would be them selling out and the owners of TracFone taking over, and turning them into a true discount provider.

Hell- As of today Straight Talk is now using the Sprint Home Device and giving away home phone for $15 a month with EVERYTHING included, $20/30 will net you international calling on a home phone. Something Sprint would never do.

michieru
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Miami, FL
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T-mobile has the advantage here because of the current 3G network in place. Even if they couldn't upgrade towards LTE the fact that I can pull up to 20Mbps on a HTC One S and 8Mbps on a Galaxy Nexus unlocked proves that the investment they did towards their 3G network has paid off with real world results. Sprint who has EVDO cannot provide such speeds without a large investment towards infrastructure and with the many changes from Nextel too Clearwire and now LTE. This caused Sprint to lose money and in the process question the overall thought process based on those decisions.

Althought Sprint Vision sounds great, this has been on the board since the Nextel merger and only now they are actually talking about some kind of deployment towards that idea.

Sprint will be forced too upgrade towards LTE for data speeds too even keep up with T-mobile's 3G network.

If we exclude data speeds from this equation then a more equal footing will be coverage. I believe Sprint has more coverage than T-mobile and I also make the assumption that they do have a roaming agreement with Verizon for 1XRTT.

Once again I would prefer T-mobile too improve coverage over speeds. One can argue that coverage and speed goes hand in hand but what matters most is still it's primary function and that's a phone.

So with that said....at this time T-mobile has the advantage and Sprint will need to reorganize itself before it can make any progress which will make any progress slow and painful.

The merger with MetroPCS will assist T-mobile with prepaid accounts and damage Sprint's MVNOs in the process because of data speeds.
tmc8080

join:2004-04-24
Brooklyn, NY
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yeah......... so?

I could see this happening, but I'm too skeptical to see this as having them offer better prices/value than what they offer now.. it would just make them a more solidified competitor on par with Sprint. I always take the "what's in it for me--the consumer" perspective on giving my blessing... and I dont' see much, if anything at all..
iansltx

join:2007-02-19
Golden, CO
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Re: yeah......... so?

Easy answer: with more spectrum (the big deal with this merger), T-Mobile can deploy more LTE in more places (they have skimpy AWS and PCS allotments in some areas). Prices won't decrease...T-Mobile is already at the bottom of the pack as far as that goes...but you'll get a better network for the same price.

If you're looking for cheaper wireless service, stop looking at the Big Four's contract plans and pick up a Straight Talk SIM. They won't whine/cut off your account unless you're using more than a few GB per month in data, and $45 per month gets you unlimited everything (with the data asterisk of a few-GB soft cap) on Sprint, AT&T or T-Mobile (Sprint phones are prefer; AT&T and T-Mobile have SIM kits available).
navyson

join:2011-07-15
Upper Marlboro, MD

Re: yeah......... so?

I switched to Straight Talk from Verizon to save money. Crappy service, dropped calls, dropped data connection, no service at home.

I switched back to Verizon and couldn't be happier.
iansltx

join:2007-02-19
Golden, CO
kudos:2

Re: yeah......... so?

You must have picked a phone on a network that doesn't work well at your location. Could have been any of the three other networks...

WiseOldNerd
De gustibus non est disputandum
Premium
join:2001-11-25
Phoenix, AZ

Competition is GOOD

Anything that helps build sustainable competition to the Death-star and the Klingons should be supported. That will always benefit the customers of all companies.
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XANAVirus
Premium
join:2012-03-03
Lavalette, WV

Re: Competition is GOOD

I think you mean the Death Star and the Borg.

IowaCowboy
Want to go back to Iowa
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Metro PCS (and the competive market).

The Metro PCS kiosk at the Eastfield Mall (Springfield, MA) and the Holyoke Mall (Holyoke, MA) went out of business recently. The deal is that they can't compete with AT&T and Verizon (which have much better coverage). Also, the big carriers have been much more lenient with credit checks as some people I know with bad credit got approved with no deposit on one of the major carriers (not an MVNO) so the alternative carrier market is declining. Pocket wireless (which took low credit customers) already folded and got acquired by Metro PCS. And they are competing with the free SafeLink cell phones (which I would not take even if I was eligible).

I am happy with my Verizon iPhone and look forward to upgrading to iPhone 5 when I am eligible for an upgrade. I recently added mom and grandma to my Verizon plan (even though they have dumb phones).

The fact that Verizon has been approving low credit customers (at least the ones I know of) with no deposit is that they don't want to lose the sale to a competitor.
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ltecajun

join:2012-10-02
Rayne, LA

Re: Metro PCS (and the competive market).

Even for those that can't get postpaid the fact that someone can go to Walmart and get Straighttalk or similar MVNO's on those networks causes even more pressure on the little guys. I myself have recommended Straighttalk on the AT&T network due to very good coverage around here.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: Metro PCS (and the competive market).

i refer people to the Sprint and VZW network- especially since on Sprint's side you can roam now. I have told people also to get ST sims and use TMO. Or just TMO directly.

But i see TMO out doing Sprint- Sprint is too focused on their MVNOs.
iansltx

join:2007-02-19
Golden, CO
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Re: Metro PCS (and the competive market).

...and not focused enough on what?

Sprint's network build-out is limited by the speed at which its contractors/subcontractors are working. You're seeing 200+ sites getting upgrades of some kind per week now (counting new Network Vision sites or upgrades to support another tech out of the pool of 3G, 1x800 or LTE), and that number will keep on increasing as the rollout gains momentum. Sprint doesn't have the network it needs to be competitive right now, but in a few months it will be competitive with AT&T on LTE footprint, with parity with Verizon and T-Mobile (TMo will probably outrun Sprint initially due to backhaul setups) eventually.

FWIW T-Mobile has MVNOs of its own. SIMple Mobile etc.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: Metro PCS (and the competive market).

Sprint will run out of cash and that's their limit. Sprint never was focused enough to start off with. If they would have been busy doing this to start off with they'd be in a better postion than they are now. They bailed on WiMax before it was even off the ground. They launched what? 2 Cities before killing the idea and selling everything? They then played the wait and see game and now that got them no where. Sprint should have been behind CLEAR and pushing out their WiMax service and killing everyone on that, they could have easily deployed a full size national WiMax network by now instead of in the hand full of cities that they are in.

And i know TMO has MVNOs on their network, but not to the size of Sprint.

Jim Kirk
Premium
join:2005-12-09

Re: Metro PCS (and the competive market).

Sprint launched WiMAX in a hell of a lot more than 2 cities, bub.
iansltx

join:2007-02-19
Golden, CO
kudos:2
You can't run a nationwide mobile network on 2500Mhz. Clear/Sprint learned this the hard way.

JamesPC

join:2005-10-12
Orange, CA
said by hottboiinnc:

Sprint will run out of cash and that's their limit. Sprint never was focused enough to start off with. If they would have been busy doing this to start off with they'd be in a better postion than they are now. They bailed on WiMax before it was even off the ground. They launched what? 2 Cities before killing the idea and selling everything? They then played the wait and see game and now that got them no where. Sprint should have been behind CLEAR and pushing out their WiMax service and killing everyone on that, they could have easily deployed a full size national WiMax network by now instead of in the hand full of cities that they are in.

And i know TMO has MVNOs on their network, but not to the size of Sprint.

From your comment it seems that you don't know what your talking about. Bailed on wimax? lol
DarnellP

join:2004-10-12
Las Vegas, NV

Re: Metro PCS (and the competive market).

said by JamesPC:

From your comment it seems that you don't know what your talking about. Bailed on wimax? lol

No, he usually doesn't know what he's talking about though he likes to pretend he does. He's got some kind of weird obsession against Sprint.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH
kiosks cost money. There is no point in having them, especially Corp owned when you can find a dealer that will manage them for you. Especially the gas stations and the payment center stores that offer ever carrier under the sun, or even Best Buy. It makes much more sense from a busienss stand point to move to dealers and allow the company as a whole to focus their money in places it makes sense. That is why a good share of the CLEAR "stores" are dealers, especially in the malls. Sign master agreements with these companies and let them have at it- the same as DELL did with their "new" stores. Which by the way are closing after Christmas.

Irun Man
what obstacle?
Premium
join:2002-10-18
Walden, NY

It's the iPhone, stupid

Carriers that didn't pay the dreaded iPhone tax are feeling the pinch and customers are leaving in droves. Smaller players such as MetroPCS have been hanging on by the fingernails since iPhone 4.

T-Mobile has been swimming against the tide as well and iPhone 5 is only accelerating customer defections.

We are being assimilated by the Borg great apple.
--
I turned on my computer for this?
silbaco

join:2009-08-03
USA

Re: It's the iPhone, stupid

Sadly that seems to be the case. Same for US Cellular.

SteelerRaw

@timet.com
said by Irun Man:

Carriers that didn't pay the dreaded iPhone tax are feeling the pinch and customers are leaving in droves. Smaller players such as MetroPCS have been hanging on by the fingernails since iPhone 4.

Leap (Cricket) has had the iPhone for a little wile now and they're still struggling.

Eddy120876

join:2009-02-16
Bronx, NY

Re: It's the iPhone, stupid

Well you have to factor in the price and what they offer. If they give you over 2.5GB of data under 60 then you will see those telcos doing better. Look at what happen to H2O, they started great and then they went to the 1GB max and people left in droves to Straight talk.
tmc8080

join:2004-04-24
Brooklyn, NY
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said by Irun Man:

Carriers that didn't pay the dreaded iPhone tax are feeling the pinch and customers are leaving in droves. Smaller players such as MetroPCS have been hanging on by the fingernails since iPhone 4.

T-Mobile has been swimming against the tide as well and iPhone 5 is only accelerating customer defections.

We are being assimilated by the Borg great apple.

The wireless market is NOT only about the IPHONE or ANY one handset... it's about the bottom line costs and the smaller carriers are fighting a tide, which is a race to the bottom on the most service for the lowest price.. anybody who think's it's always about the iphone speaks only to a demographic that can obviously afford a $649 phone and are not the segment of customer tmobile & metro are going for..
hottboiinnc
ME

join:2003-10-15
Cleveland, OH
And TMO-USA never gave in, but yet support it and are able to still do what they need to do and are picking up pace. That money that went to Apple won't ever be earned back fast enough to give companies like Sprint what they need.
brianiscool

join:2000-08-16
Tampa, FL
kudos:1

bah

I hate MetroPCS no one should merge with this company. They have terrible spotty coverage. You can never get a good signal indoors. Also they charge more money for 4G prepaid than T-mobile prepaid. Back out T-mobile stay far far away!
majortom1029

join:2006-10-19
Lindenhurst, NY
kudos:1

Re: bah

T-mobile is buying them just for their licenses.

viperpa33s
Why Me?
Premium
join:2002-12-20
Bradenton, FL
said by brianiscool:

I hate MetroPCS no one should merge with this company. They have terrible spotty coverage. You can never get a good signal indoors. Also they charge more money for 4G prepaid than T-mobile prepaid. Back out T-mobile stay far far away!

Where the hell are you living? I have had MetroPCS off and on for the past 5 years. There problems are no worse than AT&T, Verizon, Sprint, and T-Mobile. I have 4G and I get 4 bars in my house constantly. I drive to work over an hour each way and never had a dropped call. I get 4-5 bars when I am at work, both indoors and outdoors.

MetroPCS business currently is geared towards the metro areas so of course you will get spotty coverage in the rural areas. Last time I looked MetroPCS is upgrading there coverage areas slowly but surely.

MetroPCS isn't good for people who travel allot. It's good for people who are on a limited budget. I can call any phone (home and cell) all hours of the day. I have unlimited text and web all for $50 a month. That $50 a month is with all taxes and fees included. I may not have the Iphone but I have the LG Esteem which is good enough for me.

King P
Don't blame me. I voted for Ron Paul
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join:2004-11-17
Franklin, TN
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Probably cheaper to buy MetroPCS than to build out

I'm willing to bet that T-Mobile saw the numbers, and it was a better deal to buy out MetroPCS and get their spectrum, than it was to build out in the areas where T-Mobile wasn't and MetroPCS is.

There is my "Captain Obvious" statement for the day.
--
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See 8 replies to this post

Eddy120876

join:2009-02-16
Bronx, NY

Not sure how I feel about this

But I have to say that will be good for T-mobile user since they will see more speed increases. Also it will be good since there won't be no more shady Metro resellers acting like actual Metro corp stores.

northalabama

join:2001-06-18
Huntsville, AL
Reviews:
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i'm for anything that keeps/improves t-mobile

i know a lot of this has to do with location, but i love t-mobile, and hope this strengthens their holdings.

in my neck of the woods they produce the highest quality voice calls of any carrier, and their data speeds compare with at&t, without the sub-par at&t customer no-service.

go tmo!
--
The truth will set you free. But not until it is finished with you. - David Foster Wallace
chgo_man99

join:2010-01-01
Schaumburg, IL
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im directly on ATT with EPP discount

with old 2GB and 200 msg (I dont need unlimited texting), 450 minutes with 2000+ rollover left each month. All I pay for smartphone is $70 - $5 for u-verse bundle discount.

I recently upgraded my smartphone to iphone 5 and was able to keep all my plans. I paid $36 upgrade fee but got my phone from Apple store since all att retail stores and most Apple store are out of stock. LTE performs much better than 3G. The phone is very fast.

bbrlogue
Learning New Things Daily
Premium
join:2003-12-07
Alexandria, VA

Sprint Nextel, again

GSM & CDMA, Sprint Nextel again. If this happens, I'll enjoy the show. Can't get worse than the way Sprint handled it - I hope.
BiggA

join:2005-11-23
EARTH

Junk+Junk=

Junk. AT&T could have made something useful out of T-Mobile's assets. This mess would just be junk.
chgo_man99

join:2010-01-01
Schaumburg, IL
Reviews:
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Re: Junk+Junk=

Yes, but don't u think then AT&T would control too big share of market with Verizon? Wouldn't be then later vz allowed to absorb Sprint? This would leave us not just dominant duopoly we have now but probably absolute one. At least now people have some choice. Sprint has just started rolling out LTE and offers iPhone. T-mobile has now fast DC-hspa and will lunch LTE next year. They don't have iPhone but you can bring your own and soon it will work on 3G.
BiggA

join:2005-11-23
EARTH

Re: Junk+Junk=

AT&T and Verizon already own the market. That wouldn't have changed anything.

T-Mobile and Sprint could offer free service, and with sh*t networks, it doesn't put any pressure on AT&T or Verizon with their mighty networks.
chgo_man99

join:2010-01-01
Schaumburg, IL
Reviews:
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Re: Junk+Junk=

In Chicago area u could see t-mobile hspa+ blowing AT&T 3G in many areas, especially south side. Back in 2008, when I switched from t-mobile to AT&T, I lost some quality in service until AT&T improved networks 1 year layer. I had Nokia with tmobile and I recall having more often reliable reception than on bb curve with AT&T. It could be phones, but I have of doubt t-mobile suffered less due to having more and newer towers, and no iPhone at that time.

Now I still have AT&T and have iPhone 5 and I'm happy with them, I wouldn't switch. But in my opinion, tmobile has been quite competitive, especially in large metro areas.
BiggA

join:2005-11-23
EARTH

Re: Junk+Junk=

But once you leave the urban area, T-Mobile has nothing. So for anyone who ever, say, goes on vacation, T-Mobile is pretty worthless. AT&T and Verizon work pretty much everywhere. Verizon is the most consistent in that.
chgo_man99

join:2010-01-01
Schaumburg, IL
Reviews:
·AT&T U-Verse
·Mediacom
·T-Mobile US

Re: Junk+Junk=

You wanna see real junk mobile operator? Just check out i-wireless (www.iwireless.com). They are t-mobile affiliate. Some large towns, they serve with 2G only. They sell "penny" phones with 2 year contracts and they don't have any new or good android selection.

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