T-Mobile and MetroPCS Officially Tie the Knot


It seems like this deal between T-Mobile and MetroPCS has taken a long time to complete but, when you look at the failed deal of AT&T and T-Mobile some time ago, this has been a piece of cake. Following the news that shareholders approved the deal, T-Mobile and MetroPCS are officially one and the same. For T-Mobile, it's an important strategic move that should enable them to compete better with AT&T and Verizon. The deal brings 9 Million prepaid customers to T-Mobile and of course, a whole lot of cash has gone MetroPCS' direction.

MetroPCS has been given a $1.5 Billion cash payout and Deutsche Telekom now have a 74% stake in the new entity which is now trading as "TMUS" on the New York Stock Exchange. John Legere, CEO of T-Mobile US and our favorite head-honcho, had the following to say:


"The combination of T-Mobile and MetroPCS creates an even stronger disruptive force in the U.S. wireless market. Together, as America's Un-carrier, we'll continue our legacy of marketplace innovation by tearing up the old playbook and rewriting the rules of wireless to benefit consumers."

Interestingly enough, AllThingsD are reporting that T-Mobile will leave MetroPCS' branding be, and push the different carrier in different markets and demographics. Retail outlets of MetroPCS are to stay the same as well. While this looks like a good move, it would have made more sense to bring the entire carrier together and compete with AT&T and Verizon head-on. Having said that, you could switch from T-Mobile to MetroPCS or vice-versa and the money all ends up in T-Mo's pockets.

It's taken some time to get this deal together but, for the most part it's been plain sailing and hopefully, T-Mobile will start to see the benefits of the merger some time soon. If anything, Deutsche Telekom have gotten a decent pay off, standing on the sidelines with 3/4 of a new company that should see considerable growth in the future. If you're interested, the Press Release from T-Mobile is below.


[Source: T-Mobile]

T-Mobile and MetroPCS Combination Complete-Wireless Revolution Just Beginning

T-Mobile US to Ring NYSE Opening Bell as Trading Begins Today Under Ticker "TMUS"


BONN, Germany & BELLEVUE, Wash.–(BUSINESS WIRE)–May. 1, 2013– Deutsche Telekom AG (XETRA: DTE; "Deutsche Telekom") and T-Mobile US, Inc. today announced the completion of the combination of T-Mobile USA, Inc. and MetroPCS Communications, Inc., uniting two wireless innovators with one common vision: to bring wireless consumers exciting new choices while delivering an exceptional experience. The combined company, T-Mobile US, Inc., will begin trading on the New York Stock Exchange today under the ticker "TMUS."
"The combination of T-Mobile and MetroPCS creates an even stronger disruptive force in the U.S. wireless market," said John Legere, President & Chief Executive Officer of T-Mobile US, Inc. "Together, as America's Un-carrier, we'll continue our legacy of marketplace innovation by tearing up the old playbook and rewriting the rules of wireless to benefit consumers."

As previously announced, the Board of Directors of the combined company will have 11 members, including two directors of MetroPCS who will continue with the combined company. Tim H¶ttges, currently Deputy Chief Executive Officer and Chief Financial Officer of Deutsche Telekom, will serve as Chairman of the Board.

"By uniting T-Mobile and MetroPCS, we have created a dynamic new player in the wireless industry that has the right strategy and management team in place to compete successfully in today's marketplace," said Mr. H¶ttges. "We look forward to realizing the tremendous potential of the new T-Mobile."


A few facts about America's Un-carrier:
2012 combined entity results would have reflected $24.8 billion of revenue, $6.4 billion of adjusted EBITDA1, $3.7 billion of capital expenditures (excluding spectrum purchases)2, and $2.7 billion of free cash flow3.
Approximately 43 million subscribers as of March 31, 2013, two exceptionally strong brands, and 70,000 customer touch points.
A wider choice of outstanding wireless devices, including iPhone, offered through simple, affordable rate plans for unlimited talk, text, and Web – with no restrictive annual service contracts required.
The combined company's total PoP coverage is 301 million, of which 283 million are covered by owned network. 228 million are currently served with 4G and 200 million are expected to be covered with 4G LTE by the end of 2013.
An enhanced spectrum position that will provide greater network coverage and deeper 4G LTE coverage in key markets across the country. Combining the two companies' spectrum provides a path to at least 20+20 MHz of 4G LTE in approximately 90% of the top 25 metro areas in 2014 and beyond.
Target five-year (2012 – 2017) compounded annual growth rates in the range of 3% – 5% for revenues, 7% – 10% for EBITDA, and 15% – 20% for free cash flow.
Projected cost synergies of $6 – $7 billion (net present value4), with additional potential upside from the focused geographic expansion of the MetroPCS brand.

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For years now I've had a heavy interest in technology, growing up with 8-bit computers and gaming consoles has fed into an addiction to everything that beeps. Android saved me from the boredom of iOS years ago and I love watching the platform grow. As an avid reader and writer nothing pleases me more than to write about the exciting world of Android, Google and mobile technology as a whole.

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