TMO & MetroPCS merge, Sprint wants in

[Bateluer]

http://www.reuters.com/article/2012...ters/technologyNews+(Reuters+Technology+News)

Some analysts worry that a MetroPCS/T-Mobile USA deal would be hugely complicated by their use of incompatible network technologies. They are both upgrading to the same high-speed technology but this process will take years, Roe Equity Research analyst Kevin Roe said.

The U.S. market has been rife with speculation about the next round of consolidation here since AT&T's proposed T-Mobile USA purchase failed due to regulatory opposition late last year.

A combined T-Mobile USA and MetroPCS would command 29.5 percent of the market for prepaid wireless services that customers pay in advance and do not commit to long-term contracts, Bernstein analyst Craig Moffett said.

Shares of smaller rival Leap Wireless shot up more than 8 percent as investors bet that it could be the next acquisition target.

Didn't really see this one coming, mostly due to the incompatible networks. CDMA/EVDO networks are about to be worthless as LTE builds though. Verizon will start phasing their's out in 2013/14.

Add to that, MetroPCS' LTE network is tiny, spotty, and apparently slow as molasses.

 

[s44]

Forget protocols -- are the frequencies complementary?

 

[dagamer34]

Forget protocols -- are the frequencies complementary?

metroPCS has mostly PCS and AWS, so yes, the frequencies are complementary. We should see the PCS go to supporting HSPA+ and AWS continue to run LTE, hopefully in larger carrier channels (I think metroPCS runs its LTE @ 1.4Mhz instead of the more common 5 or 10Mhz channels).

 

[lupi]

this sounds very interesting.

 

[lothar]

metroPCS has mostly PCS and AWS, so yes, the frequencies are complementary. We should see the PCS go to supporting HSPA+ and AWS continue to run LTE, hopefully in larger carrier channels (I think metroPCS runs its LTE @ 1.4Mhz instead of the more common 5 or 10Mhz channels).

Yuck.
So basically, their LTE speeds won't be any faster than AT&T's HSPA?

 

[dagamer34]

Yuck.
So basically, their LTE speeds won't be any faster than AT&T's HSPA?

Well, metroPCS is a "value" brand to begin with and they don't have billions and billions of dollars to spend on spectrum in the first place. My guess is they have only a 5Mhz slice and need to use that as efficiently as possible.

The good thing about metroPCS spectrum going to T-Mobile is that all of those metroPCS customers can use T-Mobile's existing infrastructure for voice, and fully utilize that 1.4 or 3Mhz slice into 5Mhz, combine it with T-Mobile's LTE spectrum holdings, and get much faster speeds.

 

[Aikouka]

You may want to adjust your title as it's rather misleading. As the article states, Deutsche Telekom is in talks to merge T-Mobile with MetroPCS, and DT will retain a majority ownership.

 

[lothar]

You may want to adjust your title as it's rather misleading. As the article states, Deutsche Telekom is in talks to merge T-Mobile with MetroPCS, and DT will retain a majority ownership.

Deutsche Telekom has the option of selling their ownership to anyone which I'm sure they will do.
Deutsche Telekom wants to get as far away from the US as possible and focus on Europe and emerging markets.
The US is a lost cause for them.

 

[Bateluer]

Well, metroPCS is a "value" brand to begin with and they don't have billions and billions of dollars to spend on spectrum in the first place. My guess is they have only a 5Mhz slice and need to use that as efficiently as possible.

When I Googled MetroPCS spectrum holdings, they apparently bid 1.4Bn for a set of AWS licenses.

 

[dagamer34]

Deutsche Telekom has the option of selling their ownership to anyone which I'm sure they will do.
Deutsche Telekom wants to get as far away from the US as possible and focus on Europe and emerging markets.
The US is a lost cause for them.

At some point in the future, I expect T-Mobile and Sprint to do a merger of equals.

 

[Skott]

I dont know about Tmobile but Metro PCS has terrible service. Always has. At least around the Tampa Bay area where I live. They have great pricing though. Maybe this will improve their service?

 

[ImDonly1]

I dont know about Tmobile but Metro PCS has terrible service. Always has. At least around the Tampa Bay area where I live. They have great pricing though. Maybe this will improve their service?

The plan I read is to move all metropcs customers to tmobiles network by 2015. In 2015, metropcs will shut down their CDMA network and convert it to lte for both to use. Metro already has a small lte network now.

So yes eventually it will be better service.

 

[ViRGE]

Deutsche Telekom has the option of selling their ownership to anyone which I'm sure they will do.
Deutsche Telekom wants to get as far away from the US as possible and focus on Europe and emerging markets.
The US is a lost cause for them.

Agreed. This really isn't T-Mobile acquiring MetroPCS, or even a merger of equals. This is MetroPCS undertaking a meticulously crafted acquisition of T-Mobile.

"The deal is structured as a recapitalization, in which MetroPCS will declare a 1 for 2 reverse stock split, make a cash payment of $1.5 billion to its shareholders and acquire all of T-Mobile's capital stock by issuing to Deutsche Telekom, its parent company, 74 percent of MetroPCS' common stock. (An additional wrinkle: the new company will have about $15 billion in debt.)"

T-Mobile is the bigger partner going into this, but the fact that everything falls into MetroPCS's hands is not a mistake. DT will sell off their shares as quickly as reasonably possible, leaving the MetroPCS board as the de facto controlling entity for T-Mobile.

 

[chewietobbacca]

Any idea how much things will change?

T-Mobile has always been great to me, hope their plans and capabilities continue..

 

[dagamer34]

Any idea how much things will change?

T-Mobile has always been great to me, hope their plans and capabilities continue..

You should see fast, maybe even the fastest LTE speeds of any network in the United States, and a greater selection of phones since any unlocked AT&T phone will be fully usable on T-Mobile. In fact, the AT&T model of the iPhone 5 will like be the exact same model T-Mobile will sell next year subsidized because the bands will line up quite well.

 

[Bateluer]

http://thechart.blogs.cnn.com/2012/10/03/veteran-files-suit-over-frostbitten-penis/?hpt=hp_t3

Sprint Nextel Corp. (S) is in the early stages of evaluating a bid for MetroPCS Communications Inc. (PCS) that would counter an offer from Deutsche Telekom AG (DTE), three people familiar with the situation said.

MetroPCS’s stock rose 3.7 percent to close at $12.69 after Bloomberg News reported on the discussions, rebounding from a decline of as much as 10 percent. Shares of Sprint, the third- largest U.S. wireless carrier, fell 2.1 percent to $5.09.

Sprint is crunching the numbers and holding talks with its advisers to weigh the feasibility of a higher offer, said the people, who asked not to be identified because the discussions are private. The Overland Park, Kansas-based company could decide as early as next week whether to pursue a deal, two of the people said. Sprint’s board is meeting in the next two days to discuss the matter, one person said.

“It would make sense for Sprint to look at MetroPCS,” said Tom Burnett, director of research at Wall Street Access, an investment firm in New York. “The networks are compatible and that might make it easier.”

Didn't Sprint just try to buy MetroPCS not too long ago only for the deal to fall through at the last minute?

 

[Kenmitch]

http://thechart.blogs.cnn.com/2012/10/03/veteran-files-suit-over-frostbitten-penis/?hpt=hp_t3



Didn't Sprint just try to buy MetroPCS not too long ago only for the deal to fall through at the last minute?

Your link is wrong?

 

[OBLAMA2009]

http://www.reuters.com/article/2012...ters/technologyNews+(Reuters+Technology+News)



Didn't really see this one coming, mostly due to the incompatible networks. CDMA/EVDO networks are about to be worthless as LTE builds though. Verizon will start phasing their's out in 2013/14.

Add to that, MetroPCS' LTE network is tiny, spotty, and apparently slow as molasses.

metropcs's data is a joke. they dont even have 3g in downtown areas of most of the bay area. i went in one of their stores to check out their speeds and they couldnt get any data at all (not even 2g) in their own store! how do you sell phones if you cant even demostrate them in your own store? id hate to see how bad their 4g service would be even 5 years from now. prepaid isnt a bargain at any price, the service just isnt the same as what you get with att or verizon

 

[s44]

Your link is wrong?

but hilarious

 

[Kenmitch]

but hilarious

Maybe to you...I'm sure he doesn't share your humor!

 

[jpiniero]

Time for a threesome!

 

[Bateluer]

Your link is wrong?

Indeed it is. My mistake.

http://www.bloomberg.com/news/2012-...eye-metropcs-bid-to-rival-t-mobile-offer.html

Here's the right one.

 

[Skott]

I did some reading. Supposedly it will be MetroPC(MPC) customers who see the most changes/advantages. Within 3 years MPC customers will need new phones and they will have more options with Tmobile phone choices. Both companies are working on the next gen LTE service so they should blend together fine. Sounds like better service, which MPC needs more than anything else IMHO, wont happen right away but as time goes on. From what I been reading sounds like years. They have to build and grow their LTE service before things get better for MPC and that is going to take some time.

I never cared for MetroPC but I hope this deal improves them. We need more competition and choices in the cell phone industry. They are one of the few companies that offer low pricing and no contracts. We need more deals like that.

 

[ViRGE]

This is getting inane. T-Mobile has a meaningful reason to merge with MetroPCS: to allow DT to slowly sell off the company. T-Mobile doesn't need Metro's network (or user base), they just are getting shipped off to new owners.

What's Sprint's stake though? They don't need MetroPCS.

 

[jpiniero]

What's Sprint's stake though? They don't need MetroPCS.

Because they are afraid if they don't merge/buy out/do something, they will get left behind and for dead.