T-Mobile USA, MetroPCS File Formal Documents With FCC Seeking Merger Approval

In a formal move with the FCC, T-Mobile USA and MetroPCS submitted official papers on October 18th seeking approval for their anticipated merger. According to the FCC filing, the companies will send similar documents to US antitrust authorities, specifically the Department of Justice at a later date.

The new company will have 42.5 million customers according to the most recent data, or about 11.7% of the US wireless market. That number is comparative to the 58.5% combined share of AT&T and Verizon or Sprint’s 15.2%.

As has been repeated in earlier reports, the new company will continue using the T-Mobile name, keeping MetroPCS as a separate brand extending it to new cities allowing customers to have more access to smartphones and tablet computers, according to the FCC filing. Another goal of the anticipated merger according to the FCC filing is the combined entity being in a strengthened position to better distribute fixed costs of the network over a broader base, providing greater pricing flexibility.

Furthermore, the FCC filing says the transaction won’t harm competition and will instead strengthen the smallest of what the FCC described as a nationwide carrer. The new company intends to be the leading low-priced carrier in the US, with a focus on offering plans attractive to customers who seek affordability.

Editors Note: To avoid any confusion, the use of the term “New Company” is just general business talk and in no way relates to the actual naming of this new entity as described above as retaining the T-Mobile name. 

Bloomberg

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  • UMA_Fan

    Here’s to hoping new T-Mobile will be strong enough to over-take the now cash-infused new Sprint.

    • SouthernBlackNerd

      Tmobile is going to have to innovate if they want to beat Sprint. Son is known for shaking up the mobile industry and sacrificing ARPU and profits to get subscriber growth. Tmobile would have to be willing to do that plus more to steal customers.

      • chris

        U always get negative likes on many of your comments and I see why

      • UMA_Fan

        You think its likely Sprint will lower its rate plans considering it loses money the way it operates now? They have the financial backing now but cheap plans alone don’t take Verizon and att market share.

        The ONLY reason they have an uptick in subscriber gains recently is probably because they are the cheapest national carrier with the iPhone. That will likely be short lived.

        A number one carrier in terms of subscribers losing billions is not a good asset.

        • SouthernBlackNerd

          I doubt Son will lower rates, but I would not completely rule it out. He seems bent on shaking up the wireless industry. Look at what he did with SoftBank. They have already bought controlling share of Clearwire, and I doubt they are done making moves just yet.

          It is losing money, because it has to maintain a 30k+ towers on the nextel network with less than 5 million people on said network. That is the real reason they are not making money. Sprint’s CDMA arm is profitable, but the iDEN side is bringing them down. I would not be surprised if they are profitable by q3 2013. You continue to sleep on sprint like they are a dead fish in the water, but they are not.

          It is not the just the iPhone. Sprint has basically been gaining subscribers since the evo. When Humm started, Sprint had 48million subscribers, and now they are at 56 million. that is not some short lived bump.

        • JBLmobileG1

          I agree with you. I believe Tmobile will need to step it up in order to take down Sprint. They might have had a chance before the Softbank deal, but now it will be more of a challenge. This in all honesty isn’t a bad thing either, especially for the consumer. I believe it will just up the competition as well as the deals and offers that we might see down the line. I have no doubt in my mind that Tmobile will be able to compete and take down the competition, they will just need to give it all they’ve got. If they can return to the customer service from the good old days, continue to build out their network with a fast LTE launch, and release high end yet affordable phones that people want , I think they could up their rankings to the top.

      • jcj1

        What innovations has Sprint done?

  • Louie

    I think this is great news

  • JB

    I hope T-Mobile and Metro can get this done without interference from Sprint. Though I wonder if T-Mobile could use this merger as a means to buyout other regional carriers to strengthen their footprint…

    • UMA_Fan

      Yeah once they get refarming/lte done nationwide they really need to start focusing on small town coverage.

      What might show as a small market on paper could also be college town in reality. It’s not a good idea to under invest the network in areas like that mainly because you don’t want to see colleges full of educated consumers not seeing T-Mobile as a reliable option.

      • Rob

        I agree. I live in Burlington VT which is a big enough college town. We still only have edge coverage here and in the whole state of Vermont for that matter. I came here from Massachusetts where I could get 3g/4g on T-mobile. Now I’m going to have to switch carriers which I don’t want to do but come on edge is getting slower everyday as mobile apps and website get more data hungry. Sometimes I feel like I’m waiting a freaking hour just to see the weather forecast for Pete sakes.

  • LTEstyles

    I’d love to see New Sprint and New T-Mobile take out both AT&T and Verizon.

    • bleeew

      Me too! Greedy CEO’s on Verizon and AT&T, I want to see T-Mobile and Sprint beat them.

  • http://www.facebook.com/unfazedrebel Jé Be (Here but Gone)

    The sprint deal to me basically is a recoup from the iPhone deal, robbing peter to pay paul…………

  • TMoFan

    Anything that challenges the Twin Bell duopoly is a great thing, and unlike the att sellout a national carrier is preserved and strengthened.

  • Richard Yarrell

    This move is great for all parties concerned contract customers and prepaid customers. This should be great come October 2013…

  • http://twitter.com/YepiimGS_Blanco Jay J. Blanco

    Hopefully by December itll be aproved its a good merger a strengthing merger. That will change the industry for years to come. Time for T-Mobile to step theyre game up ! If its aprroved

    • http://tmonews.com David

      As has been written, they hope to have it approved by the middle of next year, December would be far too early.

      • http://twitter.com/YepiimGS_Blanco Jay J. Blanco

        I read that earlier this month so thanks for reminding me

  • riopato

    Is that a picture of the staten island store? There’s an excellent Chinese restaurant next door!

    • chinese

      Yes but the Chinese restaurant has gone out of business as you can see in the picture!

  • Under The Bus!

    Once again people, It’s All Stetson’s Fault! Traitor!!

    • eanfoso

      More like Phillip Humm

  • eanfoso

    Lmao watch AT&T start bitching about it lol

  • UMA_Fan

    So have MetroPCS shareholders voted for approval of the deal? There’s a lot of confusion of that part of the process and would have T-Mobile move to file with the FCC if there was a chance of shareholders rejecting the deal?

    • Adrayven

      I think so? I do know a small few are are suing.

  • mingkee

    T-Mibile has to setup regional unlimited plan for MetroPCS customers.

  • BARACKOBAMA

    This will be the biggest merger ever that will have a pointless outcome.
    TMOBILE & METROPCS
    joining forces
    these networks are so bad, this merger might make your service worse

  • GetOurActTogether

    T-Mobile’s so-called “strategies” give a really bad name to the concept of “strategy” — and the proposed T-Mobile/Metro merger falls into the same category. I have worked for this slightly forsaken organization for many moons, and it’s almost hilarious — though ultimately sad — that so many highly paid individuals in Bellevue can’t come up with a cogent business plan, and actually FOLLOW IT. Try this… try that… buy us out AT&T… oops… no go… let’s try to unite with the same marginal value carrier that we used to belittle all the time. Good grief, T-Mobile.