Today MetroPCS shareholders approved the merger with T-Mobile USA, after Deutsche Telekom had sweetened their offer last week. The proposed deal gives Deutsche Telekom a 74 percent stake in the merged entity and MetroPCS shareholders a $1.5 billion cash payment. Once the transaction is complete, T-Mobile will gain 9 million subscribers, boosting their total customer base to around 42 million.
“We are thrilled that MetroPCS stockholders voted to approve this transaction which delivers strategic and financial benefits,” said T-Mobile CEO John Legere in a statement. “A combined T-Mobile and MetroPCS will unite two companies with one common vision: challenge the status quo and deliver exceptional wireless experiences for our customers. As America’s Un-carrier, we will redefine the wireless industry.”
T-Mobile will remain the nation’s 4th largest carrier, but the customer additions will help them get a little closer to Sprint, who has an estimated 56 million subscribers. T-Mobile will also gain access to valuable spectrum owned by MetroPCS, which they will use to expand the coverage and capacity of their 4G LTE network.
At one time we thought the MetroPCS name might disappear, but T-Mobile has said they plan to expand the brand nationwide and market it as a low-cost alternative to the other major carriers. MetroPCS already has some attractive no-contract plans, so it will be interesting to see how the merger with T-Mobile affects them. We expect MetroPCS to gain full access to T-Mobile’s 2G/3G/4G networks, so they might become an attractive brand for unlocked Android devices.
It might be awhile before customers of T-Mobile and MetroPCS see any actual benefits of this merger, but it’s still an exciting move if you are a fan of no-contract plans and unlocked mobile devices in the US.