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Deutsche Telekom plans to merge T-Mobile, MetroPCS

Reports have it that Deutsche Telekom is planning to acquire super-regional carrier MetroPCS. While Deutsche Telekom's planned sell-off of its T-Mobile subsidiary to AT&T last year did not push through, will the company succeed in merging T-Mobile with MetroPCS?
By
October 3, 2012
MetroPCS

In the mobile industry, you need to be at the top of your game. Otherwise, with cutthroat competition, you might find yourself being overshadowed by the bigger companies. For some, though, it’s better to go for mergers and acquisitions rather than fight each other.

Reports have it that Deutsche Telekom is planning to acquire super-regional carrier MetroPCS. Now DT, which is based in Germany, owns T-Mobile and a host of other telecommunications companies in other countries. You might recall that it was DT that was in talks with AT&T for the planned AT&T and T-Mobile merger (which many fondly called AT&TMo) last year, which did not push through. Many will also recall that AT&T had to pay billions to T-Mobile in damages due to the regulators’ disapproval of the deal.

Now it seems Deutsche Telekom is not selling off its subsidiary, but is, in fact, planning to acquire another mobile company. We have a confirmation from MetroPCS itself, which issued a statement saying they are in talks with the German firm, but will not comment further until an agreement is reached.

Whatever the discussions, the companies will have to work around their differing wireless technologies and marketing thrusts. And because a combined T-Mobile and MetroPCs is not as big as the planned AT&T and T-Mobile merger, the regulatory authorities are not likely to cry “anti-competition” on this one.

Check out the full press release below.

[press]

DALLAS, Oct. 2, 2012 /PRNewswire/ — MetroPCS Communications, Inc. (NYSE: PCS) today issued the following statement:
“MetroPCS today confirmed that it is in discussions with Deutsche Telekom regarding an agreement to combine T-Mobile USA and MetroPCS. There can be no assurances that any transaction will result from these discussions, and the Company does not intend to comment further unless and until an agreement is reached.”

About MetroPCS Communications, Inc.
Dallas-based MetroPCS Communications, Inc. (NYSE: PCS) is a provider of no annual contract, unlimited wireless communications service for a flat rate. MetroPCS is the fifth largest facilities-based wireless carrier in the United States based on number of subscribers served. With Metro USA(SM), MetroPCS customers can use their service in areas throughout the United States covering a population of over 280 million people. As of June 30, 2012, MetroPCS had approximately 9.3 million subscribers. For more information please visit www.MetroPCS.com.

PR Newswire

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