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T-Mobile USA and MetroPCS in merger talks

Deutsche Telekom says it is in talks to merge its T-Mobile USA unit with regional carrier MetroPCS (PCS). MetroPCS, based near Dallas, has about 9.3 million subscribers nationwide, so the deal would increase T-Mobile USA’s subscriber base by about 28%. It would also give the nation’s fourth-largest carrier an LTE network.

T-Mobile USA has not yet begun to roll out LTE, but last week the company announced a deal to raise $2.4 billion for network upgrades and debt retirement by leasing towers to Crown Castle. The company is also sitting on $3 billion in cash that it won as a breakup fee after the Justice Department denied its attempt to merge with AT&T. The current market value of MetroPCS is just under $5 billion; the company’s sharesotherwise difficult second quarter, T-Mobile USA added a quarter of a million prepaid customers, and said that it now has 5.3 million no-contract customers.

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Martha DeGrasse
Martha DeGrassehttp://www.nbreports.com
Martha DeGrasse is the publisher of Network Builder Reports (nbreports.com). At RCR, Martha authored more than 20 in-depth feature reports and more than 2,400 news articles. She also created the Mobile Minute and the 5 Things to Know Today series. Prior to joining RCR Wireless News, Martha produced business and technology news for CNN and Dow Jones in New York and managed the online editorial group at Hoover’s Online before taking a number of years off to be at home when her children were young. Martha is the board president of Austin's Trinity Center and is a member of the Women's Wireless Leadership Forum.

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