View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
  2. Data Centre
October 4, 2012

T-Mobile USA, MetroPCS to merge to take on bigger rivals

The combined company is expected to accelerates T-Mobile's challenger strategy with increased scale, spectrum and financial resources

By CBR Staff Writer

Deutsche Telekom and MetroPCS Communications have signed a definitive agreement to combine T-Mobile USA (T-Mobile) and MetroPCS to better compete with bigger rivals like Verizon Wireless, AT&T and Sprint Nextel.

The combined company is expected to retain the T-Mobile name and is expected to accelerates T-Mobile’s challenger strategy with increased scale, spectrum and financial resources.

Deutsche Telekom CEO René Obermann said: "The new company will be the value leader in wireless with the scale, spectrum and financial and other resources to expand its geographic coverage, broaden choice among all types of customers and continue to innovate, especially around the next-generation LTE network."

The new joint company will combine T-Mobile and MetroPCS’ complementary spectrum to provide enhanced network coverage, deeper LTE network deployment and a path to at least 20×20 MHz of 4G LTE in many areas.

It will also introduce MetroPCS’ plans and services to new areas to complement T-Mobile’s applications and use network to advance its B2B applications and MVNO platform.

The new company will operate T-Mobile and MetroPCS as separate customer units, led by Jim Alling, currently Chief Operating Officer of T-Mobile and Thomas Keys, currently President and Chief Operating Officer of MetroPCS, respectively.

The transaction will see MetroPCS shareholders to receive $1.5bn in cash and 26% ownership in the combined company, while Deutsche Telekom to receive 74% stake in combined company.

Content from our partners
Rethinking cloud: challenging assumptions, learning lessons
DTX Manchester welcomes leading tech talent from across the region and beyond
The hidden complexities of deploying AI in your business

MetroPCS chairman and CEO Roger D. Linquist said through the convergence of both companies to LTE technology, the combined company will provide cutting-edge 4G LTE services and accelerate its roll-out of 4G LTE.

"In addition, this combination will allow MetroPCS to expand its no-contract offerings into new major metro areas and enhance our combined spectrum portfolio, which provides the potential to offer 4G LTE over at least a full 20×20 MHz in many metro areas," Linquist said.

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.