Justice Department Asks MetroPCS For More Details On T-Mobile USA Merger

MetroPCS made a brief announcement yesterday on their website that the Department of Justice had requested more information “in connection with MetroPCS’ proposed transaction with T-Mobile USA, Inc.” This second request for information will extend the regulatory review period by an extra 30 days, but MetroPCS, T-Mobile USA and Deutsche Telekom all plan to comply with the order and send the requested information.

The proposed transaction is subject to MetroPCS shareholder approval, regulatory approvals and other “customary closing conditions.” MetroPCS says on their website they still expect the deal to close in the first half of 2013. A small number of MetroPCS shareholders have filed suit hoping to block the merger alleging company executives did not work to get the best possible deal for shareholders.

MetroPCS intends to cooperate fully with the DOJ to obtain approval of the transaction as soon as possible and remains confident that the DOJ will find that the transaction is both pro-competitive and pro-consumer.  Completion of the transaction is subject to MetroPCS shareholder approval, regulatory approvals and other customary closing conditions.  MetroPCS continues to expect the transaction will close in the first half of 2013.

MetroPCS

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  • http://about.me/daylondeon Deacon

    here we go again .. stupid ace DOJ

    • Whitney

      They are just doing their jobs dude

      • Mike

        The only issue here is that Metro needs to settle down the shareholders to make this deal go through. Duetche TeleKom needs to also be ready to out bid Sprint/Softbank. I hope that Sprint has bought off more than they can chew with buying into carriers where the spectrum doesnt fit. T-Metro needs to also Acquire Leap to have the best possible position to go after sprint. Now the big question is what will happen with the break up of US cellular with the wireless consolidation that is going on. AWS 1700 is nice for LTE and 1900 PCS is perfect for HSPA + 42 and maybe T-Metro will take it to HSPA + 84 in time after LTE is rolled out to provide the most robust network compatible with many world phones.

        • Mike

          VoLTE would be perfect in time as it will also free more spectrum. :]

    • Mike

      Its all part of the process. This deal will go through. DT is prepared for a counter from Sprint. DT has much deeper pockets than Sprint as being one of the largest wireless operators in the world. Just not a big footprint here. That will change. As wireless consolidation continues, Sprint will buy what they can, then DT will buy what they can because if the metro pcs deal closes, there will be a 15 billion sharholder loan. So really, in the next 5 years it will be down to Verizon, At&t, And a complex merger between T-Metro/Leap/Sprint/ Clearwire/ and US cellular. They question is how will the the new big carrier be names and who will have the most cash to do the big takeover. And this is ALL about band spectrum and keeping dish, direct tv, and cable operators from starting their own wireless networks. we’ill see how it pans out. I see DT makeing T-Mobile big as DT is the value leader.

      • Whiskers

        Well keep wishing about keeping Dish and Direct TV out of it.
        My wife works for Dish and they are in talks for contracts with Google right now , if it goes through it will be huge for both.

        And you can believe Direct TV is doing the same as Dish , they want into the market of wireless as well.

        • Mike

          They can try all they want, but most of dish and direct as well as cable companies sold their spectrum. They will have a tough feat and/or will need to pony up cash to buy a carrier. They wont spend the billions needed.

        • Whiskers

          Don’t hold your breath , Dish and Direct TV want in the market and they have the money if the deal is right.

        • Mike

          They have money, yes, but no infastructure. They also need regulatory approval to use spectrum for wireless. They wont spend the billions to do it to have a mediocre network. they need to fix their own signal issues with their tv services before entering in to another line of business. If they want wireless they need to acquire a carrier or a few, but DT and Sprint will eat up what is left.

      • bleeew

        So basically T-Mobile+MetroPCS=New T-Mobile
        Sprint+Clearwire=New Sprint
        New Sprint+Leap=Newer Sprint
        Newer Sprint+US Cellular=Newest Sprint
        Newest Sprint+New T-Mobile=(New Company Name here)
        And Google+Dish=(Google’s network name here)

        • Mike

          The govt wont allow a dish/google/moto phone company. Monopoloy because of the android OS

        • Mike

          “T-Metro should acquire LEAP as their spectrum matches what tmobile/metro has.

        • Mike

          Years down the road, leap,sprint, metro pcs, tmobile, us cellular, and clearwire will all become one. This should happen in 2015 or later

    • OnlineRefugee

      LOL… There’s the tone that AT&T exhibited, that assured all of Washington would take offense and nix that deal.

      Great strategy, call DOJ lawyers stupid sessɐ. Wisely, looks like MetroPCS won’t be taking the same approach as you and Stephenson.

      • Mike

        DT was smart. They knew FCC/DOJ would never take the at&t deal. So they knew the’d get 4 billion and spectrum from att. Then tmobile made noise about verizon buying spectrum from dish, direct, cox, and comcast. Because the made noise, they got some of the coming if the deal clears. Tmobile also did a swap with leap in certain markets.

        • Whiskers

          DT did’nt know crap. DT in Europe was banking on getting rid of the US brand , that’s why they were also in back door talks with Sprint at that time.

          They wanted out then , and they want out now.

          If the right deal comes along , T-Mobile will be history whether they keep the name or change it. The T-Mobile as we know now will soon be a different T-Mobile when all the dust settles.

        • Mike

          You apparently dont understand the consolidation of the wireless business. DT is upgrading thanks to the fact they knew the DOJ/FCC would say no. Why else the large breakup fee and spectrum? Tmobile leased some towers for a couple billion to pay for the reverse merger with Metro PCS. DT is smart and both Sprint and DT are positioning themselvs to eventually become one. With the Tmobile /metro merger is would also include a 15 billion dollar loan to further better their position. Metro is still talking to Leap wireless pending the deal and it makes sense because their spectrum also matches what tmobile/metro already have. Before you make a comment like that know the facts about what is going on in the industry. The big question now is when will the new sprint and new tmobile merge, and will softbank or DT have deeper pockets to have control.

        • Whiskers

          I under stand what your saying , what i was saying is eventually Sprint/T-Mobile will become one so all this pcs metro merging BS is just another plot in their book for DT to get out of the US business.

          My point was that DT does’nt care how it happens so long as they get out of it.

        • Mike

          DT does care. They just viewed all options. If the company turns around and makes a ton, why sell off over time? If it doesnt go as planned they can sell off the stock and the gov’t cant say a thing. Futhermore, DT’s advisors told them it would be in their best interest to fix the american market and divest smaller markets in europe that are idle. More money to be made in this market. DT says it will also reach deep if needed to keep Metro PCS out of sprints hands. While all this is going on, Metro is in talks with LEAP. This will make it interesting. Tmobile would have awesome spectrum in the 1900PCS band, and plenty in the 1700 AWS band. If it goes through, Sprint will have spectrum issues because they have so much, in different bands, in different regions. Sprint has no real strategy other than to spend Softbanks money.

  • Foxeh

    Since this particular deal doesn’t have sleaze written all over it like the last one, I’d imagine things will just chuck along without too much excitement, but IANAL.

    All we really need now is to have the FCC ask Tmonews’ advertisers to cut it out with that full screen Surface ad. :P

    • Mike

      The gov’t knows there is a spectrum crunch, but would rather see the smaller carriers merge to create competition against red and blue.

      • Foxeh

        I never suggested I had a problem with this one. My point being that this is not like AT&T putting in an astronomical bid under the pretense of job creation and all that.

  • http://www.youtube.com/#/mrjlwilliams J. Williams

    They should be okay…nothing really to hide ya know.

  • OnlineRefugee

    There’s no spectrum crunch. That’s a contrivance by the carriers to jack up prices. That false narrative is in the sewers with the “justifications du jour” the banks spewed to support the $52 billion annual pure profit realized by charging $35 each for $2 cups of coffee (aka imposition of overdraft fees on unsuspecting consumers who had no idea when using their debit cards that they were “opting” to pay $35 for that uber delicious latte).

    No matter, Washington is not fooled by carriers’ bogus spectrum arguments.

    IMO the area of concern is not MetroPCS, it is with Deutsche Telekom.

    For example: there’s the DOJ’s history with Herr Oberman; then there’s the fact that Deutsche Telekom is partially owned by the Federal Republic of Germany (14-16%) individual federal German states (<20%), and the Czech Republic, to name a few.

    Moreover, whenever there's foreign ownership in whole or part of the U.S. telecommunications sector, the deal gets complicated because of heightened national security scrutiny. I won't bore you with details, but these deals concern matters other than "Do you think when the merger happens T-Mobile will get the iPhone." And it not as simple as one member in here implies, calling DOJ "stupid a$$es."

    Hint: Generally, there's three groups of folks in Washington who have responsibility in deals that will involve partial foreign ownership in a U.S. telecommunications business or vice versa. The obvious ones are the FCC and DOJ (because they are always in the news.)

    IMO, with recent flaps worldwide over Chinese-Govt.-Owned Huawei Technologies, if I were Deutsche Telekom or MetroPCS I'd be most concerned about Treasury's "Committee on Foreign Investment in the United States" that reviews the national security implications of foreign (read DT) investment, partnership or acquisition of U.S. companies.

    CFIUS is an inter-agency group (Homeland Security, Defense, Treasury, State) which reviews foreign investment submissions. In a nutshell, all foreign investments that might affect national security may be reviewed, and if deemed to pose a threat to our security, the POTUS may block the investment.

    • k-mack

      You are funny! Did you see the movie Conspiracy Theory? You sound like that guy! Lol!

  • Trevnerdio

    Ok come on DoJ, their combined consumer market wouldn’t even be that of Sprint’s…not even that close. No issues here.