T-Mobile CEO Posts Video Discussing MetroPCS Merger, Full Text Included Via Internal E-Mail

The T-Mobile/MetroPCS deal is only minutes old and T-Mobile CEO John Legere just had a video posted to T-Mobile’s YouTube page detailing some of the finer points about the merger. I’ve included the full text below which is being passed around to T-Mobile employees internally as we speak.



Catch the video or read the full text below:

This message is intended for all T-Mobile USA employees
Team –
Today is an important day in T-Mobile USA’s history.  We are thrilled to announce a plan to combine with MetroPCS to create a publicly-traded company that will be the premier challenger in the U.S. wireless marketplace.  This transaction will significantly accelerate T-Mobile’s Challenger Strategy – the new company will be a bigger, better, bolder wireless challenger with the expanded scale, spectrum and financial and other resources to compete more fiercely with other national U.S. wireless carriers.
This isn’t a deal to survive – it’s to thrive.  It’s two companies that share a commitment to innovation and customer service coming together to improve the way people communicate.  It’s about using our collective talent and innovation to redefine the marketplace.  It’s about shaking up the marketplace with our expanded unlimited 4G data plans.  It’s opening the door to new opportunities for growth.  It’s a sign of Deutsche Telekom’s commitment to the U.S. business.  It’s our path to the future.
The combined company will be a stronger competitor.  Based on analyst consensus estimates for 2012, the combined company is expected to have approximately 42.5 million subscribers and will book $24.8 billion in revenue, $6.3 billion of adjusted EBITDA, $4.2 billion of capital expenditures and $2.1 billion of free cash flow (defined as EBITDA less capital expenditures) annually.  We anticipate that the deal will close in the first half of 2013.  Once the transaction closes, we will be listed on the NYSE.  This is clearly a major milestone that will elevate our brand in the marketplace.
We have a fantastic group of seasoned industry veterans to lead the new company.  I will serve as President and Chief Executive Officer and J. Braxton Carter, currently Chief Financial Officer and Vice Chairman of MetroPCS, will be Chief Financial Officer.  The T-Mobile and MetroPCS customer units will be led by Jim Alling and Thomas Keys, who currently serve as MetroPCS’ President and Chief Operating Officer, respectively.  Our corporate headquarters will be in Bellevue, and we will continue to have a significant presence and employee base in Dallas – and throughout Texas.
I know that the entire T-Mobile team has been working tirelessly towards our bold “Challenger” vision. This transaction significantly accelerates our strategy by building upon your efforts to create a value-oriented alternative to the existing national carriers – one that is positioned to capture business and dramatically close the gap between us and the other national carriers.
Together, T-Mobile and MetroPCS will strengthen the five pillars of the Challenger Strategy:
  • Our network will be faster, stronger and more reliable.  We will combine T-Mobile and MetroPCS’ complementary spectrum to provide greater network coverage, a deeper LTE network deployment and a path to at least 20×20 MHz of 4G LTE in many metro areas.  Our single, national network will deliver Amazing 4G Services to a broader subscriber base, including better LTE network density in key metropolitan areas such as New York, Los Angeles and Dallas.  We’ll also have better in-building coverage, which as we all know, is essential for customers.  Our new company’s network plans are aligned with and will enhance the $4 billion network modernization plan that we already have underway.
  •  As a strong U.S. Value Leader, we will be able to offer attractive, competitively priced plans to better serve the full range of customers’ wireless needs, and will have a leading position in fast-growing no-contract offerings.  We will be able to strengthen our value leadership position by offering a wider range of unlimited 4G plans, including T-Mobile’s Unlimited Nationwide 4G and MetroPCS’ 4G for All.  Customers across the board will benefit from more choice and a broader selection of affordable rate plans, including SIM-only, pay-as-you go, contract and mobile broadband.  This will also make our already successful Bring Your Own iPhone option even more alluring to customers.
  • Our Trusted Brands will offer a superior customer experience and we’ll be able to reach even more customers through our more than 70,000 touchpoints.  Importantly, MetroPCS shares our unwavering focus on delivering exceptional customer service.  We’re seeing serious traction in the marketplace from our brand re-launch program, and this transaction will step up those efforts.  Not only are we here to stay – we are here to win.
  • We will continue making tremendous strides as a Multi-Segment Player by further expanding our salesforce to improve our B2B services and MVNO platform.  And our expanded network and product offerings will mean we can aggressively pursue B2B and win more customers.  As the leading value carrier, we see a huge opportunity to make the wireless experience better for all customers across the board.
  • Finally, MetroPCS also shares many of the characteristics of our Challenger Business Model and is committed to running its business efficiently and effectively so that we can offer the value that our customers expect. 
Together we will continue to successfully execute against our plan and deliver faster, more affordable, trusted 4G services to more metro areas and more customers.
As part of a larger, stronger company – both operationally and financially – you will have additional career and growth opportunities.  Our two companies have highly compatible cultures, similar management philosophies and a commitment to innovation and customer service.  We will deploy in our larger scale the key capabilities and talent of each company.
Today’s announcement is the first step in this process.  We’ll have to obtain MetroPCS shareholder approval and customary regulatory approvals before we can close the deal.  And until the deal closes, T-Mobile and MetroPCS will continue to operate as two independent companies.
I know there will be many questions and I’m committed to keeping you informed throughout this process.  In the meantime, watch for an invitation for an all-employee meeting later today.  Please also refer to OneVoice for a copy of the press release and other details about today’s announcement.
Thank you for your continued dedication and support.  Stay tuned – we’re going to shake up this industry.

John Legere

President & CEO

T-Mobile USA

Tags: , ,

  • tomarone

    How many jobs lost?

    • MagentaMadness

      Do you work for Metro PCS?

      • tomarone

        No why?

  • MagentaMadness

    We have a huge meeting today at 5:30 EST.

    • Jose Hernandez

      I hope it is nothing but good news for you all!!!!!!!!!!!!!!!!

      • MagentaMadness

        Thanks. Everything should be fine for us. Not the first time OmniStreamMobile bought up a smaller company lol.


    this was eventually going to happen, at least t-mobile made a better deal than Sprint. would have love to find out if Dish could have become a major player

  • squiggleslash

    Why don’t we just get rid of this “competition” lark and have all the carriers merged into one giant one. We can pretend that it’s good for whatever carrier we like best by wording each headline appropriately. For example, all AT&T customers can get a letter saying “Good news! AT&T is buying Verizon, T-Mobile, and Sprint!”, all T-Mobile customers can get a letter saying “Good news! T-Mobile is buying Verizon, AT&T, and Sprint!”, etc.

    Then they can announce their new plans, such as the “All New Superdooper Value Plan 500”, which includes 500 minutes and 500k of data for $50 a month. Wow! Talk about value! Can’t get that with “competition”!

    • AnthonyJ

      This is hilarious! Competition brings down prices! Why do you want a MONOPOLY? This is the dumbest thing I’ve ever read LOL!

      • squiggleslash


        Can I assume that the number of downvotes, and AnthonyJ’s reply, on my post means blatantly obvious sarcasm isn’t obvious to the people on this board? You really think I’m in favor of sending letters to customers claiming that “their carrier” is buying the others?


        • randomnerd_number38

          LOL! I got it. Apparently many people either didn’t get it or didn’t appreciate the point of your joke as it relates to this merger.

  • LAYOFF TIME!!!!!

    Dear Metro & T-Mobile Employees,
    Brace yourselves! Here comes the next round of LAYOFFS!! At the worst time, Merry Christmas and Happy New Year to that!!! Warning to Metro Employees alot of your existing positions that existed at T-Mobile U.S.A. have recently been outsourced to MarketSource!!!!

    • AnthonyJ

      The deal won’t be finalized until sometime in the first half of 2013 so they will have a merry Christmas and happy new year! That gives them plenty of time to find new jobs. Business is business and T-MO has to do what it has to do to be a stronger company and succeed. This is a great move!

    • Jack

      i just got layed off monday 10/1 by t-mobile

      • LAYOFF TIME!!!


  • nd5

    David, your thoughts????

  • xmiro

    good, but I don’t like the publicly traded part

    • taron19119@gmail.com

      I agree with you on that

    • Chris

      Why? This would essentially attract more investors and would in turn give T-mobile more money to expand their network.

      • Singleweird

        do they have another IPO? or just change the name of PCS? im not sure if any more shares are going to be sold

      • Third_Eye

        Or it could become like ATT and Verizon which went into cancelling their unlimited data plans switching to usage based to “Deliver more value to shareholders!”.

      • Adrayven

        Double Edged sword. Wall Street is rich mans casino w/rumor mill roller-coaster built in.. Look at Leap, down over 20% because of a rumor that wasn’t even confirmed till today. Combined with micro-traders, you’re basically just asking for someone to trash you’re company.

  • gwhyte01

    You know I like this new CEO. He seems like he’s actually trying to do some work. Previous ceo’s including Dotson was a bunch of lazy bastards. Wonder if they’ll keep the tmobile branding.

    • MagentaMadness

      Previous CEO was brought in for one thing and for one thing only – Make the AT&T acquisition happen. That went out the window, he shipped out somewhere else, new guy is in. We will still be TMO as Metro PCS is/was a much smaller company.

  • teknodogg

    hopefully we’ll get better phones now….like HTC ONE X+ and the SONY XPERIA T!!!???

    • squiggleslash

      After this merger, T-Mobile will have gone from being fourth place carrier to, uh, fourth place carrier.

      MetroPCS doesn’t have enough customers to make much of a difference here, so the chances are there’ll be no dramatic change in the number and quality of phones available.

      • Curtis

        Its about spectrum, not customers

        • squiggleslash

          No, the range of phones that T-Mobile offers has nothing to do with the amount of spectrum they have.

        • AnthonyJ

          Agree 100%! This has everything to do with spectrum. MetroPCS purchased a lot of AWS spectrum in the 2006 auction and now that all belongs to T-Mobile. I don’t know why so many people are against this deal. It will bring better national coverage and a more robust LTE rollout. The extra customer base and better network coverage will help them lobby for better devices such as the iphone. This deal is necessary and a no brainer.

        • squiggleslash

          The question was about the range of phones. No, the amount of spectrum T-Mobile has has nothing to do with the range of phones.

          And I might add that T-Mobile is unlikely to significantly increase the amount of spectrum it has after this merger, given STANDARD FCC PROCEDURE (as in what it’s done with virtually every merger in the last decade) is to force merging carriers to give up overlapping spectrum.

          T-Mobile has nationwide AWS. MetroPCS – nationwide AWS. That leaves PCS, and the amount of non-overlapping spectrum both operators have is tiny, if not non-existent.

        • Loy

          partially wrong, its about both customers, equipment and business build up to drive better coverage in inner city cellular penetration to the striving markets like New York, Chicago, LA. Win over those potential customers with affordable rate, unbeatable coverage and A grade customer service ( prior to the att failed merger, 7 JD Powers awards) on top of the merger adds about 10 million customers, that’s a very big deal with annual increase in T Mobile profits. If the new co, gets to add another 10 million due to changes, TMOB is then in third for 2014. Don’t forget COO from MetroPCS is recruited under TMOB wing now. So fresh new talent with a new face CEO thats make extreme changes internally where everyone wins. You can tell John had a stroke, right lips and eye brow.

      • tmo emp

        The deal isn’t about immediate 3rd place ranking or a wider variety of phones. It’s mainly about becoming a stronger public company and about spectrum. The phones and the customer base will fall in to place along with all the other changes.

        • Chris

          Don’t worry. Some people just don’t get it.

  • Can we have Conan weigh in .. Especially concerning bandwidth compatibility and how LTE and Hsdpa+ going to look like ?

  • taron19119@gmail.com

    Welcome 2 the US version of everything everywhere

    • xmiro

      I know right? Although EE only shares spectrum and towers, I think unless that changed

      • taron19119@gmail.com

        EE owns everything and is slowly but surely phasing out orange and t Mobile and changing it to everything everywhere

      • Tmo emp

        I think they announced Orange and Tmo UK would operate as EE recently.

    • D Velasquez

      i wouldn’t be surprised if they drop T-Mobile brand at the last minute to call it Everything Everywhere haha, good one.

  • rfgenerator

    Don’t see this taking away from my fears that this move means further neglect of non-urban areas. My take is that if you are in a city, your coverage may indeed improve over time, however if you drive outside of the city the best you’ll be able to hope for is the existing EDGE, GPRS infrastructure. Even in cities T-Mobile is dicey. As an example in Worcester, MA I’ve found many, many sections of the city that claim to have 3G/4G, but actually end up falling back to EDGE even outside. Head out even a couple miles outside of Worcester and it’s likely to fall to GPRS. Money spent on this purchase will come at the expense of coverage outside of MetroPCS’s footprint.

    • squiggleslash

      Yep. It’s not even as if you’ll get a Cingular+AT&T merger style temporary improvement in coverage. T-Mobile and MetroPCS both:

      – Have national spectrum
      – Have limited actual coverage
      – Have completely incompatible phone systems, with absolutely no T-Mobile phones being capable of roaming on MetroPCS networks or vice-versa.

      But, as you say, instead of improving T-Mobile’s network, T-Mobile now has to spend money on:

      – Buying MetroPCS
      – Laying off thousands of redundant employees
      – Upgrading MetroPCS’s customer base to GSM, or maintaining four entirely incompatible networks (IS-95/2000, 2GSM, UMTS, and LTE)
      – Forced spectrum refarming, given the inevitable FCC merger precondition that a swathe of nationwide AWS be returned or given to other carriers.

      Something tells me that there’ll be no 3G covering my workplace in the next five years…

      • Hamster

        Metro and T-Mo’s 2G and 3G networks will remain separate, this is true and has already been stated. Their LTE networks are comepletely compatible, though, and offer a clear path to convergence of the networks. In addition, having the two networks’ subscribers able to share one big pile of spectrum will help both networks quality of service on its own.

  • rfgenerator

    Also that T-Mobile will become publicly traded is the death of customer service and a steady stream of BS coming from HQ. Publicly traded companies will screw the customers and employees to keep the stockholders happy.

    • randomnerd_number38

      This is my concern, too. I’m VERY concerned that the focus on being “Value leader” but still needing to keep the shareholders happy with the profit is going to result in massive cuts to customer service and a lot more outsourcing. I pray that I’m wrong.

  • Ben

    This seems like a great deal for T-Mobile USA, but in reality it’s just another deal for DT. I don’t get it. Why is it that every transaction concerning T-Mobile USA turns out to be a deal that profits DT? Everything they do here is done so they can “pay down debt” in Europe. Is DT in all of Europe not making enough money? The tower leasing, failed AT&T merger, and now this proposed merger is meant to give them enough money to pay down some kind of debt. Can someone please help me understand what’s going on here?

    • Logomancer

      It’s pretty simple. DT has seen T-Mo as an albatross around its neck for a few years now. They brought in a new CEO solely to make the AT&T-Mo deal happen and get the company off their books. But the citizens and regulators nixed it. This is Plan B for DT — T-Mo gets more spectrum (the towers aren’t as valuble because MetroPCS’ infrastructure is pretty crappy, so they’ll need to blow cash on upgrades) while DT gets to get rid of the company. As an added bonus, the directors have the potential to make as much money as they would have in the AT&T-Mo merger by selling their stock. Not a bad deal for them.

      For us…well, it kinda sucks. There’s the potential to get more coverage, but T-Mo will need to build lots of towers, meaning equipment investment, construction, regulatory and planning approval — all of which will take time. Meanwhile, asshole investors buy up T-Mo shares and start demanding bigger returns. T-Mo complies, cutting service and support and raising prices because, hey, that’s what you do. This means that whatever plans T-Mo has in the works to be more awesome, it won’t matter because the new shareholders will prevent their implementation.

      They probably realized this when they decided to put the President and COO of MetroPCS in charge of their customer units. It may have been so they could sack the guy currently in charge due to T-Mo tanking in JD Power ratings…or it might be because MetroPCS knows how to run a low-cost customer service division. Either way, we’re screwed.

      The deal is good for investors, good for executives (except the ones that are getting the axe, but they’re pretty employable), and to some extent good to the other Big Three because they no longer have to compete with a company that doesn’t have to listen to shareholders. The people that the deal is bad for? That’s us.

      • conservative_motorcyclist

        And that’s why we, the people, the T-mobile customers, need to buy as many shares as possible!
        Then we finally get a say in the company :D Capitalism at it’s finest!

      • Nice speech. Except that’s assuming the shareholders ruin the company. An assessment I don’t agree with. Stop spreading FUD and let’s just see what happens…

    • MagentaMadness

      Yes, in short, DT is(and has been) struggling in Europe. TMO-USA is only of their only profitable companies for them.

      • MagentaMadness

        EDIT: “One of their only”

  • Joseph Tongret

    Anyone who frequents these comment boards knows that I’m a mobile tech enthusiast, and also a Tmo enthusiast. I’ve known as well as anyone else that Tmo has needed some sort of drastic change in order to not just grow, but to survive. I see commenter’s all of the time that seem to “have the answers” to what Tmo must do in order to be successful. Admittedly, I really don’t know what it will take to bring them to the front lines of the carrier’s current battle over customers & spectrum. But, I do feel that Legere has a strong interest in success with resurrecting Tmo, and bringing the current customer base what “we” want. The unlimited data, though I’m not sure he was behind but he seems to support, the aggressive attempts to bring the Tmo iphone owners a better experience, and the attention he seems to give to the refarming & the lte network modernization, are all great examples of how he is keeping a focus on “us”, & what we’re interested in. I hope I’m not wrong, & maybe I’m just looking for someone in this company to put some faith in, but he seems to be the kind of leader I want to see at the helm. He appears to be hungry, active, & willing to work for success & not just here to collect a paycheck. It wasn’t too long ago that he was introduced to us, & his resume seemed impressive. I haven’t had a chance yet to dig deeper into the this “reverse merger”, but it seems with DT calling the shots Tmo was some what riding on a flat tire. DT really seems to have little to no interest in investing in the US carrier front, & that all translates to them letting the company “coast along at a slowing rate of speed”, rather then spending money & being creative about how they can move Tmo up the ladder of the big 4. I’m behind ANYONE who will enthusiastically work to improve the company, show some sort of concern for our position amongst the Big 4, & focus on Tmo US as a primary rather than a secondary (at best) as DT seemed to be doing. I imagine DT will be selling their shares not to long after this is official, or at least a good portion of them. Here’s to the future & positive change!

  • TayshaunBoba

    I really want to like this, but for some reason I can’t. As much as I wanted Deutsche Telekom away from T-Mo, I don’t like the thought of a regional carriers that’s 1/3 the size of T-Mo eventually taking over. And the fact that Legere started off the video talking about being the “value” carrier again was downright scary as we all know how well that worked last time..

    • Jose Hernandez

      MetroPCS is not taking over T-Mobile. T-Mobile is taking over MetroPCS, the reason why this is a reverse takeover on paper, is so that T-Mobile can become a public company easier that if the alternative.

      • TayshaunBoba

        Yeah, and I get that part, but my concern (as many other articles have also pointed out) is that this gives Deutsche Telekom an easy out as all they have to do is slowly sell off their shares and leave MetroPCS with a majority stake. I guess it’s just too early to tell exactly what they’ll do.

  • Very nice deal here… This is far better than the failed AT&T “merger” attempt. Excited to see how other carriers react. T-Mobile on the way to being #3; I think so.

  • Turb0wned

    I feel like T-Mobile really only cares about having the fastest data speeds… That would be fine if they actually had service like AT&T or Verizon. Please someone correct me if i’m wrong but this doesn’t help T-Mobile out at all with signal.

    • MagentaMadness

      Read up on frequency spectrum and you’ll understand how it will help TMO out with signal.

    • Hamster

      Increased spectrum holdings allows both better signal and speeds. Will they suddenly have as big a footprint as Verizon or ATT? Of course not. They should be able to rival Sprint’s, though, once the full effects of the deal are felt.

  • stimey

    Spend the money building towers. It’s the coverage stupid!

  • Mirad77

    Does this guy looks like someone who is exited? Is it just me or does this guy looks more like a man with a mission like his predecessor did? Time will tell.

  • @UMA_Fan

    Turns out it’s a reverse merger. So just like I said in the post, it’s an exit strategy for DT. Technically Metro is taking over T-Mo, and in the process DT, gets 76% of shares. Can you guess what they’ll do with them?

    Here’s a quote from Engadget.

    “However, it will finally give Deutsche Telekom the graceful exit from the US market that its been so desperately seeking for some time.”

    • od312

      Good. We don’t need douche telekom

    • Napster87

      too bad you’re completely wrong all while being completely full of shit :/

      • No he isn’t, not even close.

        • Napster87

          Mobiles not going anywhere. We’re acquiring metro. Not the other way around.

    • Napster87

      too bad you’re completely wrong and completely full of sh!t

  • rfgenerator

    Another thought is that we can expect customer service to head into the toilet as the new company prepares to shed jobs and send more employees to the unemployment line. Don’t even begin to argue that this isn’t going to happen as every merger (especially since it means transititioning T-Mobile into a Wall St publicly held company) means massive job cuts amongst the Rank & File. Folks who survived the ATT debacle are now back in the soup of uncertainty.

  • VegasDude73

    what will the new name of the company be? Stock ticker? My guess T-Metro, TMET lol.

  • thejames

    How does Steve Buscemi have enough time to do Boardwalk Empire AND lead T-mobile??

    On a more serious note, I’m very happy that T-Mo is finding their stride in Prepaid and are scooping up a company that will push them to 30% market share in that segment.

    Once the U.S. market loses it’s love affair for spending more overall for subsidized phones T-Mo will be ready and willing to take on customers looking for the value proposition.

  • Dakota

    Sounds a bit delusional.. its me tropics..not Verizon..hard to believe rates won’t change eventually…and doubling down on failed Carly commercials? In short term, uncertainty & hearing Me tropics may dissuade potential contract customers

  • Dakota

    Bet lots of employees this am are worrying about losing their jobs..so is metro & PCs brands coexisting or wilmetropcs become T-Mobile prepaid..I’m still a bit confused…and newsflash..metro isn’t known for great network or phones

    • Hamster

      MetroPCS and T-Mobile brands will coexist for the time being (separate customer units). They’ll simply draw on the same pool of network resources.

  • the little guy

    When a CEO sounds this excited about a change in the company, it sets off a red flag in my head… And the flag doesn’t have any stripes or stars… It justs says “LAYOFFS”.

  • WirelessRefugee

    $250 million to MetroPCS if the deal falls through.

  • WirelessRefugee

    From my investor ticker:

    The combined company will retain the T-Mobile name.

    $6B-$7B in cost synergies are targeted.

    T-Mobile USA CEO John Legere will head the company, and Deutsche Telekom will nominate board members.

    MetroPCS, which is announcing a 1:2 reverse stock split, will receive a $250M termination fee if the deal falls through.

    T-Mobile and MetroPCS have 42M combined subs right now, though that number is declining.

  • LOVE

    the best thing tmobile usa has done to date