The nation's fifth largest carrier, MetroPCS, released a statement on Tuesday saying that it is in talks with T-Mobile about a merger. The latter is the nation's fourth largest carrier and by purchasing MetroPCS, it would give T-Mobile service in 14 LTE cities instantly, along with about 1 million LTE customers. Currently, T-Mobile does not have an LTE pipeline although it is expected to start building one next year.
MetroPCS has focused on the urban market
While the statement from MetroPCS merely said that it is engaging in talks regarding a combination of the two carriers. T-Mobile is owned by Deutsche Telekom and was courted by AT&T in a potential $39 billion deal that was never completed after AT&T failed to obtain regulatory approval for the deal which was being challenged by the Justice Department.
It might be easier for a T-Mobile-MetroPCS to get the necessary regulatory thumbs up as a deal would combine the nation's fourth and fifth largest operators and would also make T-Mobile stronger and able to better compete with Verizon and AT&T. Additionally, MetroPCS is a pre-paid carrier and combining it with T-Mobile would not increase the latter's market share of the post-paid market.
"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."-MetroPCS statement
Alan, an ardent smartphone enthusiast and a veteran writer at PhoneArena since 2009, has witnessed and chronicled the transformative years of mobile technology. Owning iconic phones from the original iPhone to the iPhone 15 Pro Max, he has seen smartphones evolve into a global phenomenon. Beyond smartphones, Alan has covered the emergence of tablets, smartwatches, and smart speakers.
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