Deutsche Telekom Looking To Purchase MetroPCS, Combine With T-Mobile USA?

Here we go again as a new Bloomberg report indicates Deutsche Telekom is in discussions to merge T-Mobile USA with MetroPCS communications. Deutsche Telekom is currently considering a stock-swap transaction that would give T-Mobile’s parent company control over a joint entity, which would be publicly listed, said two officials on condition of anonymity. Deutsche Telekom continues to look at other options for T-Mobile USA, including an outright sale and IPO.

After the failed AT&T deal, Deutsche Telekom continues to look for ways to bolster their USA branch and increase the business’ ability to gain size and new customers.

“The thing they lack is size and it would be easier to be part of something larger,” said Alexandre Iatrides, an analyst at Oddo & Cie. in Paris who recommends investors reduce their holdings in Bonn, Germany-based Deutsche Telekom. Combining with a smaller player “isn’t really the option they prefer, but they don’t really have a choice” after the disposal plan failed, he said, adding that Sprint Nextel Corp. (S) could be a viable, alternative partner.

Sprint talks with MetroPCS failed in earlier in the year for unknown reasons, abandoning plans at the last minute after the board vetoed CEO Dan Hesse’s plan to grab the regional powerhouse. MetroPCS had also been a frontrunner to buy divested assets from a joint AT&T/T-Mobile should the government seek to sell of portions of both companies to gain regulatory approval.

I hate to beat a dead horse, but I’m really quite puzzled by these reports indicating Sprint is a possible buyer for T-Mobile. Sprint is in worse financial position than T-Mobile and their commitment to their Network Vision project makes it unlikely Sprint could leverage enough capital to afford a multi-billion grab for T-Mobile USA. Nevermind Sprint’s commitment to Ericsson, Clearwire and Apple.

Bloomberg

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  • ogopogo

    The Sprint thing is definitely a no-go – I don’t see how or why they would even mention that as an option. As for the Metro PCS thing – great move (if it goes through).

  • mrsbelpit

    Yeah, I don’t know about this. But if it’s true, at least DT seems to be investing in T-Mo USA instead of abandoning them.

    • David Icke

      Yeah, just abandoning 7 call centers worth of employees — while taking on 9 million new customers possibly. Hah…

  • BL@Z3

    I hope they do merge

    • TMOTECH

      No No.. Not merge. Buy.

      • http://pharaohtechblog.blogspot.com/ Conan Kudo (???????)

        Merging would be bad. That would mean the new company would be 50% owned by Deutsche Telekom, and 50% owned by MetroPCS Communications. There is no way Deutsche Telekom would go for that with such a small company like MetroPCS Communications. The last time something like that happened, Vodafone AirTouch was created (a merger of Vodafone Group, plc and AirTouch Communications of the U.S. created Vodafone AirTouch plc, who began the process of creating Verizon Wireless by buying and merging wireless assets in the U.S., and that led to some seriously sticky legal and financial issues).

        The stock-swap arrangement would allow for Deutsche Telekom to convert all shareholders of MetroPCS Communications into Deutsche Telekom shareholders at equivalent or slightly greater share values (thereby giving shareholders a more valuable set of shares, in theory).

        After doing so, Deutsche Telekom can fold MetroPCS Communications into T-Mobile USA, probably creating the T-Mobile USA Prepaid Brands Group, which would manage Monthly4G and MetroPCS.

  • Xavier

    whatever makes TMo bigger. GO ‘TMO GO!

    • Roger

      MetroPCS runs a CDMA network with a limited rollout of LTE (with many reports saying it is a crappy implementation). Any purchase would then be buying customers but those customers have no contracts so you’d really be buying the goodwill behind the MetroPCS name. Calling the result Tmobile would be discarding that goodwill and royally confuse the customers since Tmobile’s phones wouldn’t work and vice versa.

      It would only make sense if the purchase was for the spectrum. Even that isn’t necessary as Tmo and Metro could partner over LTE spectrum and compete on customer service and market segmentation.

      • MagentaMadness

        MetroPCS LTE is a crappy implementation as you stated, as their LTE network albeit in 15 markets, is running over T1. Rumors round the water cooler here is that TMO is looking to create a spin company for prepay, much like theres Sprint and then Boost Mobile. We shall see.

  • Giraffe

    I don’t like the idea of T-Mobile positioning itself as the premium prepaid carrier, but if it’s a smart business decision, I guess it’s a smart business decision…

  • TMoFan

    I don’t think this is a great move; it will only “cheapen” T-Mobile’s
    image. We want to move the other way, not this way. Unless they buyout
    Metro and shift all of their prepaid to them kind of like what Sprint
    did with Virgin / Boost.

    And why is it always Sprint buying TMo? Why not DT buyout Sprint???

    • Jose Hernandez

      I thought that was the meaning behind (Alexandre Iatrides, an analyst at Oddo & Cie. in Paris) comments, that DT would “Maybee” buy Sprint. There is no way that Sprint could buy an ice cream at the corner store, much less TMobile.

      • TMoFan

        I reread that and it sounds to me like a partnership, where Sprint / DT would own a certain percentage of the combined entity. So not a buyout, but that’s something that makes more sense than this Metro nonsense.

    • Robert Turner

      DT doesn’t want tmobile. So why would DT buy sprint? The metro pcs works as they would spin off the combined company into one public company, thereby, getting rid of it. (although, they’d probably be a significant shareholder)

      • TMoFan

        Maybe because the combined company would have a better chance competing with the Twin Bells? If anyone is in a position to buy the other it’s DT, definitely not Sprint.

      • UMA_Fan

        theres no real indication DT doesnt want tmobile. Selling to att gave them a bigger return than competing.

        • BigMixxx

          SO TRUE! folks slipped on that 10 percent…10 percent on 120 billion is a lot of change…

  • Jose Hernandez

    Well, now I am confused. From the article above, it seems that (Alexandre Iatrides, an analyst at Oddo & Cie. in Paris) is the one that mentioned that Sprint might be a better “Partner”, not a takeover option, but a partnership. This article also states that DT is the one trying to buy Metro PCS, could go ofter Sprint, not the other way around. Did I really read this the wrong way?

    Ps. A deal with Metro PCS would be way better than AT&T. Will ALWAYS be better than anything with AT&T.

  • perfectalpha

    Its just an unfortunate turn of events. Both providers are trending in the wrong direction. Going all in on the prepaid game could be okay. That’s just a recipe for never getting the best handsets.

    • mrsbelpit

      But what does that matter when t-mo’s refarming to have HSPA+ on 99% of unlocked GSM phones? I went to T-Mo the other day and looked at the One S, and it’s gorgeous, but the carrier controlled aspect of it left me deciding against it. The bloat was incredible. It has Carrier IQ. I know I can root and remove all of that, but screw that, I’ll get the Gnex and not deal with that bs.

    • BigMixxx

      I think I’ve said this a couple of times. Spectrum is the new oil, the more you have the more you can command. It’s a good move to get the consumers, even better to get their spectrum. Metro has a decent footprint and does not piggyback on many services like that of a cricket. as of Q4 they had 9 million subscribers.

      Now get this: This would put t mobile on the biting heals of Sprint as far as consumer base. ALSO get this, this would give them HIGHER bandwidth numbers in the major markets, shooting them right on up their with Sprint.

      While I’m not technically as versed on the CDMA vs. GSM thingy, i do know LTE is GSM based, and with a little tweaking there should be some good handoff between LTE to GSM…scary part about that is, with the addedd bandwidth and tower footprint, things could get EVEN uglier for sprint….

      • perfectalpha

        Understood…and point taken. I don’t think its really as big of a deal as it may seem. I understand the spectrum crunch fully. I just think that at the end of the day, when it comes to cell phone providers the actual cell phones are the stars of the show. Listen, consumers are signing a two year contract and if the iPhone has proven anything…consumers will put up with crap network (aka: AT&T in NYC and SF at the time) for the devices they want. I don’t see how us getting MetroPCS is going to get more high end devices on T-Mobile.

        Personally, I believe T-Mobile needs to start getting out of the “service” business and start focusing on the “experience” business. Right now, there is a stigma that if you get T-Mobile service, you’re going to get a poor service experience. While that may not be fully true, there is some truth to that and the biggest eyesore continues to be the handsets. If you don’t believe me, search TMobile on Twitter. You’d be AMAZED with what customers are actually saying (especially compared to the competition).

        Again, I don’t disagree with anything you’re saying…if you look at it from a pure competition standpoint it makes sense. What T-Mobile has yet to answer is WHY should a consumer on Verizon or AT&T choose to take the T-Mobile experience? You can argue price, flexibility in devices etc…but is the experience really better?

        • BigMixxx

          Scanned the twitter machine…DAMN, folks hate the handsets. Love the service, hate the phones…I know I was one with the infamous (meaning more than famous) Behold II’s for roughly a month and I went got a BBerry 9700. That phone was HORRIBLE even when dumping touchwiz.

          T mobile has a history of picking ‘the wrong phone’…( I Still hate the mytouch name). The best thing right now is the GSII…HTC’s one line, I’d have to wonder why the T chose the S over the X. Maybe because they have an ultra big phone and not step on any toes…

          Any any case…totally agree…

        • perfectalpha

          The history is pretty recent especially compared to AT&T:

          Lumia 710 < Lumia 900
          HTC Radar < HTC Titan (or II for that matter)
          Galaxy S Blaze 4G < Galaxy Note
          One S < One X
          oh yeah, they carry the iPhone too.

          At the end of the day…the phones are the stars, and folks want the most desirable phones because in their mind they feel they will get the most desirable experience. If you are not in the game of trying to offer a world class phone experience, you might as well leave the game…not buy a competitor.

          I

        • J-Hop2o6

          AT&T has/had exclusivity on Lumia 900 (Tmo might get this or a variant of it), Galaxy Note (exclusivity over now, and there is a Tmo branded one floating around, so thats coming to Tmo soon), One X (Tmo might get this after exclusivity ends). And Tmo will *support* iPhone once their HSPA+ over 1900 band is fully launched.

        • perfectalpha

          Here is the problem. Folks are already committing to two year contracts on AT&T while all this stuff goes on behind the scene. You have to be first to the scene. I know nobody wants to hear about Apple, but part of the reason for their success is the timely release of their products.

          As much as you may be optimistic, I will be completely honest with you. Folks are not about to spend 500 to 700 bucks to bring their phone over to T-Mobile. Consumers want instant gratification. Hell, if you work retail…how does that help you? Oh yeah, go to the AT&T store and buy you phone at full price, then come to the T-Mobile store to get your service? Come on man.

        • Get_at_Me

          There’s very few ppl that will pay full price for an iphone to be used on TMOs network. Theyre banking on ppl either buying used iphones from 3rd parties or bringing their “once new” iphone over to TMO.

        • perfectalpha

          I guess…would you bet the future of the business on that model? I think it makes an experience that is less than savory for current iPhone users pretty darn good. Hopefully I am wrong on this, but I simply can’t see this attracting customers in droves either. Folks who use AT&T for their unlocked devices may find T-Mobile more attractive…that’t about it.

        • J-Hop2o6

          But there’s already 1M+ using unlocked iPhone’s on Tmo. So there are lots of ppl out there.

        • J-Hop2o6

          But there’s already 1M+ using unlocked iPhone’s on Tmo. So there are lots of ppl out there.

        • J-Hop2o6

          But there’s already 1M+ using unlocked iPhone’s on Tmo. So there are lots of ppl out there.

        • J-Hop2o6

          But there’s already 1M+ using unlocked iPhone’s on Tmo. So there are lots of ppl out there.

        • J-Hop2o6

          But there’s already 1M+ using unlocked iPhone’s on Tmo. So there are lots of ppl out there.

        • J-Hop2o6

          But there’s already 1M+ using unlocked iPhone’s on Tmo. So there are lots of ppl out there.

        • J-Hop2o6

          But there’s already 1M+ using unlocked iPhone’s on Tmo. So there are lots of ppl out there.

        • J-Hop2o6

          But there’s already 1M+ using unlocked iPhone’s on Tmo. So there are lots of ppl out there.

        • J-Hop2o6

          But there’s already 1M+ using unlocked iPhone’s on Tmo. So there are lots of ppl out there.

        • J-Hop2o6

          But there’s already 1M+ using unlocked iPhone’s on Tmo. So there are lots of ppl out there.

        • J-Hop2o6

          But there’s already 1M+ using unlocked iPhone’s on Tmo. So there are lots of ppl out there.

        • J-Hop2o6

          But there’s already 1M+ using unlocked iPhone’s on Tmo. So there are lots of ppl out there.

        • J-Hop2o6

          But there’s already 1M+ using unlocked iPhone’s on Tmo. So there are lots of ppl out there.

        • J-Hop2o6

          But there’s already 1M+ using unlocked iPhone’s on Tmo. So there are lots of ppl out there.

        • J-Hop2o6

          But there’s already 1M+ using unlocked iPhone’s on Tmo. So there are lots of ppl out there.

        • perfectalpha

          That is true; reason why I feel that banking your business strategy on folks going to the store, buying a phone for a lot of money and then bringing it to T-Mobile is cause the Nexus One failed with Google trying to do the same thing. We revere the Nexus series, but let’s be honest…until the Galaxy Nexus was released on Verizon it was never exactly a “Top Seller.”

          The only benefit I see to this is perhaps the devices that are awesome and released on AT&T get released at T-Mobile at the same time. If it is an exclusive for 6 months type of deal on AT&T and then releases on Magenta (which is what I think will end up happening), T-Mobile doesn’t have a prayer for growth.

        • J-Hop2o6

          But there’s already 1M+ using unlocked iPhone’s on Tmo. So there are lots of ppl out there.

        • http://pulse.yahoo.com/_22F4BJBKQ4EDLR5DYRTQKQTUM4 DJSA

          When does infamous “mean more than famous”? Point me to a dictionary entry for that so I have that for reference. I like using the word so I’d be curious if there was another usage.

          It usually means something along the lines of being famous for bad or evil reasons. Hitler was infamous, Charles Manson is another good example, the Challenger explosion, bombing of Pearl Harbor (from a US point of view), Chernobyl… all famous for being very bad people, places or events.

          Anyway, I love my handset (HD7) only reason I’d want a different one would be I want an FFC which wasn’t really something TMO had a lot of when I got my HD7 and I’m probably going to buy my next phone outright.

        • BigMixxx

          infamous…more than famous: http://www.youtube.com/watch?v=GIGtHhAfe8w
          I was teasing….of course I know what infamous means!

  • UMA_Fan

    Anyone know spectrum wise what position this would put tmo in?

    • http://twitter.com/CptnMagic Randy H

      They would get more AWS spectrum in metroPCS markets for sure.

  • dmak

    If they bought MetroPCS, i would say they should not merge the brands… T-mobile’s prepaid offerings could be sold under the MetroPCS brand or another brand completely. Something like Sprints prepaid devisions, boost and virgin.

    • 21stNow

      But is that really the best way to go? I wouldn’t look to Sprint for good business ideas. I could see having one separate brand for prepaid, but two different prepaid brands is just a waste of marketing (and other) dollars.

  • BigMixxx

    I think it’s a good move, given that they are creeping up on their low end margin. They are buying the consumer base vs. the company. Quick dirty growth and plus you get some valuable spectrum with some LTE established.

    • ogopogo

      The spectrum is the one thing people are missing with this approach. Everyone is focusing on the stigma associated with Metro PCS rather than taking a step back and looking at the big picture.
      T-Mobile has been one of the most thoughtful carriers in terms of positioning, and how THEY can get the best bang for their buck while keeping your monthly costs low. I will cite their “slow” adoption of LTE as a blessing – allowing the rollout of R10 hardware at a lower cost than Vz or AT&T. They were also smart enough to ask for SPECTRUM and a breakup fee from the attempted AT&T takeover (again, another smart move). They have stood up to Apple, and gave them the middle finger by refarming their spectrum to support the Apple fans. Now, by acquiring/merging with Metro PCS, they are solidifying their regional footprint, and gaining valuable SPECTRUM.

      They are doing a great job. Keep it up Tmo!!

      • http://www.facebook.com/jaquan.saliard Jaquan Anthony Saliard

        dude i totally agree with everything you just said. tmobile is doing a lot of changes (very good ones).

      • J-Hop2o6

        ^^ THIS! +1

      • Antonio Cunningham

        +1

  • Grammatica di Polizia

    I think some analysts mentioning Sprint as a possible buyer of TMOUS or MetroPCS are just saying that to “cover all contingencies.” I am not aware that Sprint is currently seeking to do a deal with either. (As David herein alludes, Sprint has no money, is losing money, overpaid to get the iPhone, etc.)

    Most significant, last year the Dept. of Justice told Sprint it would object to it too buying T-Mobile U.S. So that’s when Sprint dropped the idea and focused its efforts on opposing the AT&T deal.

    As far as acquiring MetroPCS, Sprint abandoned that idea too. The deal was too expensive for what it was, acquisition of a “flexible” customer lost. Prepaid subscribers have to come cheap, or not at all.

    Deutsche Telekom’s acquisition of MetroPCS might sail through, especially since MetroPCS has been losing subscribers and is aggressively looking for a partner or buyer.

    Sidenote: Looks like TMOUS is moving toward becoming what I characterized last year as the “premiere prepaid carrier.” (T-Mobile is wasting its time and money trying to compete against the top post-paid U.S. carriers.) Alas, as DT knows, the prepaid market is even more competitive than post-paid business.

    To make it with prepaid TMOUS needs to radically alter the U.S. arm of the business.

    In other words, this news is NOT good news for U.S. employees. I estimate DT is going to have to fire 2/3rds of TMOUS’ workforce. The merger of the two U.S. operations is good news for consumers, but not for employees or U.S. employment numbers.

    As I said in 2010, prepaid is where the money is at, especially in these hard economic times and $4.50 gas. People are spending $70 to $90 to fill up the car to get to work for a week to ten days. With a carrier like Straight Talk payday-to-payday consumers can have “unlimited” data, truly unlimited talk and text, all for $41 monthly. You tell me, where are T-Mobile’s value conscious customers going to go? I submit to prepaid.

    So yeah, this is good news for T-Mobile faithful.

    Query: Are people in here going to have to take back all their nasty comments they made about MetroPCS. LOL.

    • http://www.facebook.com/profile.php?id=1719518229 Adam Oakes

      its really funny to read your comment or opinion; just rambling on about nothing in reference to the article and no factual proof about t-mobile to your claim. i feel bad for you, how much time did it take you to write that comment. sadly you wrote more than the author to the article. who cares, really? TMOUS is solely interested in 2 year contracts, and selling the heck out of Required 4g web preferably $35 per line. even VALUE plan customers require that obligation of 2 years to start and lock back in when using the benefits of EIP. TMOUS has very little interest in loose short term prepaid customers, its too much from complaining customers to pamper and make them happy, and poor return. DT isn’t going to spend 10B for MetroPCS either, their too busy rolling out LTE for TMOUS in the timeline of 2013.

  • Wex

    To me, it just feels like Tmobile is solidifying its reputation as an also-ran, a prepaid brand, a lower than the top tier brand. Their incredible and increasing closeness with Walmart already makes it seem like a less-than brand. And thats fine if thats what they want to be…There are more and more articles in recent weeks about the growth in prepaid and new promotions and even an app. I don’t know what Walmarts are like in the rest of the country…The one closest to me is very low-brow from its customers to its employees. I only go their because my health insurance requires it and sometimes I buy a few items that are really cheap but the whole feel of the store and the service is really bad. I think there are some Walmarts in higher end suburban markets but the one near me is NOTHING like the happy, smiley people in the commercials. And they are tying themselves with Tmobile – from the prepaid specials to the $30 plan – to now there was even a large Tmo HTC banner outside the cell store. Metro PCS is likely known (at least around here) as a sub-par brand that caters to low end consumers and lower to low/mid class. The stores are all in the low income neighborhoods – which ironically Ive seen new Tmo stores being built. I live in a mixed area that is close to the ‘hood’ of yesteryear and its interesting to me to see Tmo stores going up near Boost and Metro PCS while ATT, Verizon, Sprint are on the other side of town. I hope Tmo just decides what it wants to be. I just see the service deteriorating more and more and it just doesnt feel like the company I joined many moons ago. Im on the verge of leaving once and for all

    • Seriously?

      I guess you could say the same for the iPhone since it’s sold at Walmart.

  • http://pulse.yahoo.com/_CYQUMMC7Z4UBLSHQAJGNJBKVPM JamesS

    Let’s just get it over with. Google, buy Tmo!

    • haters on the rocks

      as much we all love tmobile i wouldnt think this would happen even if we wish it would. google has bigger problem to deal with and that oracle.

      • Andrew Martonik

        I’m sure even certain people inside Google want it to happen too. But Google just isn’t ready/willing to run a company that entails them having to provide customer service and deal with all of that baggage.

        If they DID buy T-Mobile, it’d have to be run separately and simply be a subsidizing platform for Android phones.

      • http://engadgetsucks.wordpress.com/ Don’t Really Care

        I think it would be interesting, and maybe good, for this fantasy to come true.

        However, I would leave Tmo if they got bought by Google.

    • http://pulse.yahoo.com/_22F4BJBKQ4EDLR5DYRTQKQTUM4 DJSA

      I’d be out before the ink dries. Do No Evil…. Yeah right…

      • http://engadgetsucks.wordpress.com/ Don’t Really Care

        Don’t be evil is the quote.

        Just saying… ‘Do’ and ‘Be’, not necessarily the same thing. ;P

    • Gouv

      Google spent wayyy too much on moto… they need to recover. Though it would be interesting to see an ad based cellular network.

  • Grammatica di Polizia

    How this may not be a done or easy deal:

    - DT does not have a good reputation in Washington.

    - DT has a “rap sheet” at the Dept. of Justice. That’s never a good thing when looking for government approval on your deal. (It was the FBI who requested German LE execute a search warrant on Rene Obermann’s home. And in 2010 German authorities opened up their own probe into DT bribery. They too searched Rene’s office and one of his two homes.)

    http://online.wsj.com/article/SB10001424052748703743504575493703414547196.html

    - Govt. entities who must approve the deal have not forgotten AT&T’s and DT’s conduct last year during the acquisition battle. Some parties said horrible, insulting things about those entities, including the FCC and DOJ, after the deal went south.

    And the parties submitted FCC and court filings indicating they thought everyone on the government’s side was stupid.

    Now DT wants to go back to the same people and get the MetroPCS deal approved. Hmm… maybe not, eh. (I duly note that it was AT&T and Stephenson who were being the jerks, including how they treated FCC officials.)

    - Washington may not approve the deal because too many U.S. employees will be kicked on to the street. This is an election year, not the best time to be seeking deal approvals that will add to the nation’s jobless rate.

    - TMOUS is a division of a foreign company. Any U.S. dealings by foreign companies receive extra scrutiny. The “application process” is a little tougher on foreigners.

    • Get_at_Me

      ATT would have a tiny argument on the basis of hypocrisy, however Metro isn’t as big a player as VZW, ATT, Sprint & TMO. TMO acquiring Metro wouldn’t have as big affect on the US market as ATT acquiring TMO. I see your point of DT having a sour relationship with regulators, but i think ATT was the “bad guy” in that situation. DT kinda just stood by and watch things unfold. Some may disagree with my stance, but i think it would be crazy to reject a TMO/metro deal. Nationals have scooped up smaller regionals in the past. TMO being the smallest of the 4 nationals should face the least amount of scrutiny. Allowing TMO to increase in size via acquisition would make them stronger…..It would be a hyprocritcal move to deny DT/TMO the right to acquire a regional. ATT and VZW haven’t gotten to the size they are partly due to buying smaller companies. You can’t force TMO to remain in the US market, but deny them the ability to grow more quickly through buying a regional.

  • dingaling

    If Sprint and Tmobile hook up im definately jumping ship. Sprint service flat out sucks!

    • J-Hop2o6

      Tmo will still have their own network (same for Sprint) if that ever happen (which it wont).

    • http://www.binarybulge.com/ BinaryBulge

      I agree on Sprint, but if they did hook up, the brand would probably be entirely different, and they’d likely do whatever they could to keep their reputation squeaky clean for the short term. And just because the service sucks on either side currently, they’d be combining infrastructure. They could do whatever they wanted with the proverbial Lego pieces to build something awesome.

      I say bring it on, and I think it’s the only deal that makes sense.

  • Eddie

    That’s good idea to merge with metro pcs . Please t moblie make it happen . Buying metro for 10 billion that’s smart move .because I remember sprint was plan to buy metro for 10 billion but sprint headquarter they canceled the deal . I don’t know why .

  • BahamasGeek242

    T-Mobile just upgrade the network as fast as you can so we can use any unlocked GSM phone and still get great HSPA+ speed.

  • http://www.facebook.com/jaquan.saliard Jaquan Anthony Saliard

    its funny how everyone is freaking out thinking tmobile will be gone or something. tmobile announced that its re-farming its hspa+ network and launching LTE in 2013 so this merger or buyout nonsense is still up in the air as of right now. and really Tmo/Metro? their networks are totally not even compatible so this will be very unlikely to happen

    • J-Hop2o6

      Its more about the AWS spectrum & customers than Metro’s radio tech. All Tmo has to do is shut down Metro’s CDMA network, and use their AWS to bump up MHz where ever Metro has AWS and use it for LTE.

  • http://www.unscripted360.com/ Deacon

    so who’s gonna be the first at the FCC to say buying MetroPCS would kill jobs etc etc etc and thus kill the deal if it attempts to go through?

    • J-Hop2o6

      AT&T, lol.

  • Wilma Flintstone

    So now Metro is in a similar situation that Tmo was in with the “AT&T Merger”. If DT gets Metro, will their prices go up? I’m sure alot of MetroPCS people are wondering this seeing as how Tmo’s prices are quite a bit higher than Metro’s are.

    This will be interesting to see how this plays out.

    • J-Hop2o6

      Tmo has prepaid plans also, plus a better and faster network. Win-Win.

  • nreaction

    This would be bad for all consumers on all carriers. The elimination of competition only leads to higher prices and lower grade service. I hope people start to realize that the people on your side are other consumers, not the brand service you use. Opinion of a Satisfied T mobile Customer

  • Grammatica di Polizia

    That Bloomberg article is noteworthy for other reasons. Did anyone notice this:

    “Deutsche Telekom, which is scheduled to deliver results tomorrow, is projected to report the loss of 470,000 T-Mobile USA contract customers in the quarter ended March 31, according to the average estimate of seven analysts compiled by Bloomberg.”

    Ouch!

  • http://starspotlight.tumblr.com/ DtheArtist

    They need to just stop. I just wish DT would just let T-Mobile go & let us be a separate entity in the US. They’re just messing us all up. We’re doing good now & have great plans for the future, do not drag us down hill again.

    • J-Hop2o6

      W/O their $$$ we won’t be able to improve the network, nor get great phones, meaning Tmo will have to downsize. I’m not sure how Tmo will do as a IPO.

      • John Poopy

        they currently get no money from DT, none, zip, nada, in fact DT are the ones who are raping and pillaging the US business. an IPO would bring in billions in a very short amount of time.

        • J-Hop2o6

          DT already committed to invest $3-4 billion on TmoUSA for their network refarm and LTE upgrade. Search it.

  • Grammatica di Polizia

    Handset cost is an issue in that even the $200 subsidized price is the reason people agree to long-term contracts. In this almost-depression economy and $4.00+++ fuel, people struggle to meet all the costs of switching carriers or even phone upgrades.

    Perhaps T-Mobile can set itself apart from the prepaid competition by allowing people to pay for a handset (sold at cost) over 12 months, under a credit installment agreement, that’s NOT tied to a plan. If one switches to another carrier early, he or she still has to pay T-Mobile for the phone.

    A customer would have that option or T-Mobile could sell GSM SIM cards allowing a customer to “bring your own phone,” even the iPhone (with a microSIM). This would be a great competitive response to Straight Talk’s SIM program.

    http://www.straighttalksim.com/

    • Get_at_Me

      TMO did something like that before…it was called “even more plus” Postpaid plan w/o contract where the customer financed the device interest free over a 20 month period. If the customer jumped ship before the device was paid off, they would then be billed for the remaining balance of the device (no etf since there’s no contract). The EM+ was still tied to the customers SSN# so there were credit implications if any balance was left unpaid.

      • guest

        It still does this to some degree. It is called the ‘Value’ plan and if you bring your own device or keep one from a previous contract, you get a discounted rate compared to the plan where TMOUS has to subsidize the device upfront.

      • Grammatica di Polizia

        Ah yes, I remember that. I was an EM+ customer from when they introduced it. I liked the program mainly because I was not under contract.

        What I am suggesting is T-Mobile’s EM+ handset financing be extended to prepaid. AFAIK there’s no prepaid carrier in the US offering the ability to “finance” handsets.

        Of course this idea works only under the assumption that responsible people, so to speak, are moving to prepaid. No way I would offer handset financing to the deadbeats of “prepaid yesteryear.”

        And handset financing would be “subject to credit approval.” The danger of this, however, is that handset financing would eliminate one of the main features of prepaid and why people use it, no credit checks. Then again, it would just be an option for customers. They are free to bring their own phones or pay pay full price up front.

  • ChadBroChillz

    Horrible idea. First, Metro customers are all prepaid. They could jump ship after the deal goes through, which means DT would have spent 8+ billion for just spectrum and towers( which they are already having trouble selling). It would be very difficult to convert their CDMA customers to tmobile’s gsm network. If they force migration, they could see almost all leave. and if they do a slow migration( like sprint with nextel), they will probably lose hundreds of milions if not billions from having to keep up with two separate networks. Learn from Sprint’s mistakes.

    I will say this, I do like the fact that DT is investing in tmobile USA.

  • Freak4Dell

    This could be a good move for the spectrum alone. Gives them more spectrum to work with for LTE in the larger markets (or more to spread around to different markets if possible…don’t know if the FCC allows that sort of thing), and more PCS to do their refarming with. Either way, it makes more sense than Sprint buying Metro, and Santa Claus riding a unicycle in July carrying the Easter Bunny’s head on a silver platter makes more sense than Sprint buying T-Mobile.

  • mmmaxheadroom

    This could be a good move if… If metro PCS holds the proper spectrum, say lots of 1900 MHz. If not for more spectrum I don’t see much to gain from this move. Now think back to 2006 when tmob bought suncom, they had to do that because they had 0 coverage in the Carolinas and syncing really filled in the southeast well. Metro should be a spectrum grab only because tmob has good coverage where metro is based.

    • Freak4Dell

      Metro has both PCS and AWS, and some in the 700 band, too.

  • Gouv

    If this is true.. I can’t help but feel it would be a complete cluster F*CKKKKK!!!!!!!!

  • randomnerd_number38

    Anyone remember that “brand relaunch” that’s supposed to happen in q3/q4? I remember hearing some buzz that T-Mobile was gonna launch a new prepaid brand(think Sprint and Boost/Virgin Mobile) to replace T-Mobile Monthly 4G. This does seem to jive nicely with those rumors.

  • fred

    What. Do they mean by initial public offering or an outright sale of T-Mobile USA, IPO? Someone h

    • Freak4Dell

      Outright sale would be them selling T-Mobile to some other company (or ridiculously rich individual). IPO would be them spinning off T-Mobile as a separate U.S. company and offering shares in the stock market so the public can take ownership (though I’m sure DT would retain a majority of the shares if they were to do this).

  • AM3RIG

    Why TMO looking to buy Metro pcs. a ghetto cell phone company ?

    MetroPCS and T-Mobile are not a good technological or customer fit…

    T-Mobile USA and MetroPCS networks run on different technologies, also!

  • 24FT

    Why Would Tmo Buy MetroPcs Wen They Use 2 Different Network Technologies . It Would Take Time To See Any Real Benefits Besides Just Adding Customers. Um Take Note Of How Sprint Is Still Trying To Combine Their Networks To this Day

    • http://www.binarybulge.com/ BinaryBulge

      I don’t know much about the technology behind the towers, but perhaps it’s just about reconfiguring the infrastructure to do whatever you want with it. Otherwise, sell what you’re not going to use, and buy what you are.

      Off-topic… what’s with the word capitalization scheme you got going on there?

  • http://www.youtube.com/user/SuperElvisfreshlyATT Freshly_Snipes

    Dudes…STFU about Google buying T-Mobile…Fcc regulations make it ILLEGAL and UNLAWFUL for any hardware, software OEM (Google, Motorola) to own or own majority parts of and mobile carrier directly or indirectly.

    If you don’t believe me then Google it or search through thr FCC standards..There is no maybe. This is 1000% truth.Get over it and do some friggin research my friends. I love you all in my Mahatma Gandhi voice. lol

    • UMA_Fan

      That’s like saying Apple can’t make the iPhone since it makes the hardware, software, OS, and technically isn’t a service provider with iMessage and facetime? If Apple started charging for Facetime tomorrow, I highly doubt that would be illegal.

      The FCC made it pretty clear that it’s okay with mergers as long as it doesn’t consolidate given industry. Like how Comcast bought NBC/Universal. That got approved by the government despite the controversy. Competition in either industry wouldn’t have been affected. That’s actually a pretty similar scenario to Google purchasing T-Mobile USA (if) it were to ever happen. Google could even divest the hardware business if it really wanted to to get it approved. It only bought Motorola for the patents anyway. At&t buying T-Mobile would have been more like if CBS tried to buy NBC. Not likely to happen.

      Also… why CAN’T a cell phone operator make it’s own phones??? The only reason they don’t is that it’s more cost efficient to go to an existing manufacturer to make hardware for you under your own brand than to delve into the business of doing it in house. Especially when service revenues are your core business, not device sales. In fact, by carriers pasting their own branding of the phone on devices they sell they basically are saying it is ‘their’ proprietary device. It just HAPPENS to be that another manufacturer went through designing/building it.

  • xmiro

    Doubt Sprint will buy T-Mobile, they will just partner for LTE network sharing similar to how Clearwire does it perhaps.

  • mloudt

    dt wants t-mobile to get more customers and spectrum from this deal. but this would be a small version of the sprint/nextel deal which ultimately failed and cost sprint billions. the bottom line is its two different technologys which is to much of a hassel and burden to manage. Sprint used cdma and nextel used iden sim based technology. If the two companies that are merging use similar technologies then it makes sense. example att and cingular the reason that worked perfectly was because they both use sim card gsm technology that was easy to convert which propelled att to be the number 2 US carrier. seeing as t-mobile uses gsm and metro used cdma their not compatible and its not worth it unless t-mobile wants to end up like sprint. also dumb ass people google will never buy t-mobile so stop saying you wish that will happen. idiots google owns the rights to android devices which pretty much every carrier prepaid or postpaid sells android devices. google is not going to jeopardize their business partnerships with all carriers in order to own t-mobile.

    • UMA_Fan

      It actually propelled the combined att/cingular into the #1 carrier for some time. Verizon didn’t take the top spot until they acquired Alltel.

  • Taron

    This is a good move put all the t-mobile prepaid customers on metro pcs and have t-mobile be just postpad only and then u have best of both worlds metro pcs would focus on prepaid customers only and just get low end phones and t-mobile just focus on postpaid and get hight end phones only

  • Taron

    This is a good move put all the t-mobile prepaid customers on metro pcs and have t-mobile be just postpad only and then u have best of both worlds metro pcs would focus on prepaid customers only and just get low end phones and t-mobile just focus on postpaid and get hight end phones only

  • UMA_Fan

    What about combining T-Mobile, Metro, and Leap? I bet the combination of all three would have a customer base that would just barely surpass Sprint, though most of them would be prepaid. They could force everyone on cdma to gsm and give them an equivalent handset. DT making the entire entity public will generate them a vast amount of money almost instantly and will allow them to exit the US market if other firms want to invest in T-Mobile.