Dallas-based MetroPCS Communications Inc., the surprise winner in a 2006 auction of $3.6 billion worth of licenses covering the New York area, made its wireless debut today in New York City. The company’s network covers 10 million customers in the New York metropolitan area, including the five boroughs and portions of Bergen, Hudson, Union and Essex counties in New Jersey.
“We think New York is the perfect opportunity for us,” said Dan Olmetti, VP and general manager of MetroPCS. “The economic times have produced a situation where people are looking for extreme value for their money.”
The provider is looking to poach clients from its bigger competitors by offering prepaid plans low rates and minimal commitment. Plans cost between $35 and $50 a month, including an unlimited talk and text plan for $40 monthly.
MetroPCS, which also serves Philadelphia and Boston in the Northeast, hopes New York will become its biggest market within a year. The carrier currently has 5.4 million subscribers nationwide.
“I definitely think they stand a chance,” said Forrester Research analyst Charles Golvin. “Their target segment has been increased by virtue of our current economy.”
In addition to peddling low-cost wireless plans, MetroPCS is also appealing to customers to customers to forfeit their landlines for a prepaid wireless plan.
Manhattan-based Verizon, which became the nation’s largest wireless carrier after completing its $5.9 billion acquisition of Alltel last month, lost more than 900,000 corporate and homeowner landlines nationwide in the fourth quarter. AT&T lost one million landline customers in the same period.
MetroPCS’ launch in New York should give Leap Wireless Communications Inc. subscribers access to the market as well, thanks to the companies’ recently inked roaming agreement.
“Following the launch of New York and Boston today and taking into account our belief that Leap will launch coverage in Chicago by the end of February, all of the top-five markets in the U.S. (New York City, Los Angeles, Chicago, Dallas, Philadelphia) and 9 of the top 10 markets (we expect Leap to launch in Washington, D.C., by mid-2009) will be covered by either MetroPCS or Leap,” wrote Raymond James analyst Ric Prentiss in a note to investors.
Kira Bindrim is a reporter for Crain’s New York Business, a sister publication to RCR Wireless News. Both publications are owned by Crain Communications Inc.
