Well that didn’t take very long, did it? A few days ago we talked about MetroPCS looking to get itself bought out. Earlier today, we confirmed that they were talking to Deutsche Telekom, the parent company of T-Mobile. Now, not even a day later, a deal has been struck.
There are a lot of details from the buy. After everything is said and done, T-Mobile and MetroPCS will be one entity. Deutsche Telekom will control 74% of the shares in the new, merged company while MetroPCS will retain control of 26% of shares. Also, MetroPCS is getting $1.5 billion.
Now, we have a lot to talk about. This is a particularly interesting scenario. MetroPCS is a CDMA carrier with a growing LTE network. T-Mobile is a GSM carrier with no LTE network. How is that supposed to work? T-Mobile’s new CEO John Legere has stated that the products will remain separate. MetroPCS will continue to maintain their CDMA network and T-Mobile will continue to maintain their GSM network.
In terms of your every day life, nothing. As stated, T-Mobile will continue to operate as T-Mobile and MetroPCS will continue to operate as MetroPCS. It is business as usual. So there’s no need to cancel the contracts and run for the hills just yet. The only difference between now and yesterday is that MetroPCS no longer actually owns itself.
When we first discussed potential suitors, we talked about how T-Mobile was the least likely candidate. However, after the information has settled, it is really a great move. T-Mobile and MetroPCS operating under the same banner means that there is now one entity controlling both a GSM and a CDMA network. That is quite the rarity. Mobile carrier TracFone in the only other carrier in the United States that does that.
Included below is a video of CEO John Legere sounding ever so excited about this new opportunity. Now that everything is said and done, it’s time to let the chips fall where they may and see how this all plays out. Is anyone excited about the MetroPCS and T-Mobile merger? We’d love to hear your thoughts.