Featured: Deutsche Telekom Announce MetroPCS and T-Mobile Merger To the Tune of $1.5 Billion

October 3, 2012 - Written By Tom Dawson

It’s finally official – MetroPCS and T-Mobile have just sealed the deal on something that’s sure to create waves in the wireless industry. MetroPCS and T-Mobile are merging to become one network and one company under the T-Mobile name and branding. We’ve been hearing rumors on such a merger or a buy out from one side or the other but now, it’s finally official and it looks like the two companies mean business. I’m certain that T-Mobile don’t want a repeat of the AT&T merger of which there “was no plan B” but, T-Mobile have found their plan B in MetroPCS. Let’s go ahead and take a look at what the merger means for the two companies as well as the ins and outs.

The two companies will become one entity and one network operating under the T-Mobile banner of which Deutsche Telekom will hold a 74 per cent stake in and MetroPCS the other 26 per cent. MetroPCS will receive $1.5 Billion in cash as a result of the merger. Whilst the two will remain separate entities until the deal is said to close come the beginning of 2013 when all is said and done the T-Mobile banner will be the only one left waving. Whilst this might look like T-Mobile are swallowing MetroPCS this is being billed as a reverse merger with MetroPCS taking over T-Mobile. There’s word that this new merger put an end to the recent deal that T-Mobile made with Crown Castle to lease T-Mobile’s towers. Thankfully, with this being a merger between two smaller network operators there’s likely to be little or no interference from regulators.

When it comes down to who’ll be heading the new company up, T-Mobile’s new CEO John Legere will become President and CEO and MetroPCS’ CFO will retain his position when the deal goes ahead. Until everything is completed the two networks will continue operating as is, with separate pools of customers – just as normal. T-Mobile have released a PR video featuring John Legere – which you can watch at the end of the post. This new merger could see a new, faster and true 4G company rise up in 2013 and it’s something a lot of you out there have been waiting for. In such a field I believe that there’s no such thing as too much competition and with the fourth place carrier getting stronger and stronger this should benefit consumers in the long run.