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Deutsche Telekom rumored to be interested in purchasing MetroPCS


Rumors by Dan Seifert on Wednesday May 09, 2012.

t-mobile · metropcs · rumors · carrier news · dan seifert

Please note that this story is based upon rumor and/or speculation.
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According to a report by Bloomberg, Deutsche Telekom is in talks to purchase MetroPCS and merge it with DT's T-Mobile USA property. Bloomberg's unnamed sources claim that a stock-swap transaction would give Deutsche Telekcom control over the combined companies, though they also said the company was contemplating an outright sale or IPO of T-Mobile USA.

A purchase of MetroPCS would give T-Mobile USA about 9 million more customers and access to Metro's AWS(INFO) spectrum holdings. However, it would still be in the fourth place slot that it is in now, and Metro's no-contract customers are not nearly as valuable as those T-Mobile already has. Additionally, Metro's AWS holdings are pretty slim, and it doesn't have enough licenses in most markets to offer a competitive LTE service (MetroPCS's LTE service is considerably slower than those offered by Verizon Wireless and AT&T). Not to mention the fact that the vast majority of Metro's customers are on its CDMA(INFO) network, which is incompatible with T-Mobile's GSM(INFO) network.

Bloomberg says that T-Mobile's ambitions with MetroPCS are to stem the tide of customers that it has been losing in recent quarters. Additionally. Deutsche Telekom is still apparently interested in an outright sale of T-Mobile to another company altogether, an effort that failed last year when AT&T backed out of its purchase plans for T-Mobile amid steep opposition from regulators.

source: Bloomberg

 
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