The Marriage of T-Mobile and MetroPCS

After the devastating rejection of the T-Mobile and AT&T merger last year, T-Mobile deserves a good rebound, and it looks like the company found one with MetroPCS. Unless regulators strongly oppose the merger, the two companies will form into one by mid 2013.

T-Mobile and MetroPCS has proposed to the Federal Communications Commission (FCC) and U.S. Department of Justice (DOJ) to approve their major. The two organizations need to agree to the acquisition before the companies can be officially one.

However, we shouldn’t expect to see the strong opposition and drawn out battle that we experienced with T-Mobile and AT&T’s proposed merge. Neither T-Mobile nor MetroPCS is as large as AT&T. In the AT&T and T-Mobile proposed acquisition, the concern had been that AT&T would become part of a duopoly against Verizon, thereby cutting out competition.

The deal between MetroPCS and T-Mobile has received positive reaction thus far. However, there are many stepping stones between now and the completion of the merge. For example, if Sprint makes a bid for MetroPCS, T-Mobile might be on the losing end.

How would the merger affect customers if it should be approved? Both companies plan to remove all of MetroPCS’s former CDMA and LTE infrastructure. T-Mobile says it plans to replace devices with HSPA capabilities. Customers will be allowed to keep their phones until 2015, the deadline for the CDMA to HSPA switch.

T-Mobile also plans to introduce 4G LTE to its customers, so there’s one thing to look forward to for MetroPCS and T-Mobile subscribers.

 

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