Apr 24 AT 10:34 AM Taylor Wimberly 18 Comments

MetroPCS shareholders approve merger with T-Mobile


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.

Via: Reuters

Source: Bloomberg

Taylor is the founder of Android and Me. He resides in Dallas and carries the Samsung Galaxy S 4 and HTC One as his daily devices. Ask him a question on Twitter or Google+ and he is likely to respond. | Ethics statement

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  • redraider133

    I am excited to see what TMO can do with the extra spectrum and how quickly they will be able to expand/improve their network. This could definitely be what TMO needed and gain a lot more customers.

    • http://androidandme.com Taylor Wimberly

      T-Mobile has promised to deliver 2X20 MHz LTE services in 90 percent of the top 25 U.S. markets. They have been installing LTE Release 10-capable equipment, so we could see theoretical max speeds around 150 Mbps (faster than any other LTE network in the US).

      • redraider133

        Speeds are nice and all but I am hoping they can at least upgrade their existing network to 3g for now so there would be more than just edge outside of major cities. I would definitely switch if that happened.

  • roland

    I hope T Mobile can use this merger as a launching padto get better coverage better service and most important better phonesI’ve been with T Mobile 7 years the one reason I’m still with T Mobile has a lot to do with the Nexus unlocked unlocked unlocked very important…one thing I don’t understand is that Metro PC phones are the worst phones on the market to methat’s the one concern that I have are T Mobile want to go for the best phonesfor years the head midrange phones

    • http://androidandme.com Taylor Wimberly

      What do you mean better phones? T-Mobile has the HTC One, Galaxy S 4, Blackberry Q10, iPhone 5, Windows Phone 8X, etc. and they let you bring your own unlocked device (when most carriers don’t). What else could you ask for?

      • Jimmy_Jo

        I think people are thinking of the “bad-ol’ days” when T-Mobile was a second-class citizen that only got lower tier phones. For instnace, when the HTC One came out last year, everyone got a variation of the One X (which was a joke. It’s called “The One” but there’s 6 versions…..) and T-Mobile got the lower tier One S. Stuff like that leaves a bad taste in some people’s mouths.

        How is T-Mo servce in NYC? I’m thinking of switching from Sprint. I wouldn’t even get a new phone. I’d get a Galaxy S III and just wait for the Next, next Big Thing

  • Jeremy Sheehan

    Very nice. I was hoping this would go through. This is one merger I’ve been behind from the start. Still like to see Sprint/Softbank, too. I’m kinda wary about Sprint/Dish.

    Let’s give the mobile industry a good shake up!

  • Richard Yarrell

    Definitely a great day for all Tmo/metro customers. This will be a benefit to everyone.

    • snowbdr89

      Nobody asked for your opinion so zip it dbag.

    • squiddy20

      Wow. I’m genuinely impressed. You’ve managed to comment on something without saying “boss”, “pimp slapping”, “shit/piss on [insert username, carrier, or manufacturer here]“, or any of the myriad of of other childish crap you spew on a constant basis.
      Too bad it’s a blanket “all is good” comment and not something truly insightful though…

  • VS

    Fantastic choice of picture for the article fellas. I’d forgotten all about Ranji and Chad. Brought a smile to my face.

    • http://androidandme.com Taylor Wimberly

      They need to bring back Tech & Talk!

  • Nathan D.

    Awesome, I hope this means better signal strength because that would be super nice because the speeds in my area are good enough for me. But, sometimes I don’t always get the best signal.

  • donger

    This will help T-mobile gain some followers.

  • Joel

    This is great news for me all over. Im in South FL and both TMO and Metro have amazing service in my area. How is that going to work with the CDMA and GSM difference though?

  • sushimane

    i didnt know the merger would be reverse metropcs would take over tmobile over time. i hope metropcs doesnt mess up my t mobile experience with them i love tmobile. would John Legere still be the ceo after the merger is done?

  • Rodney

    I have metro pcs and I live just outsde of kilgore texas which is 4G for kilgore but alittle weak where I live ive checked t mobiles coverage for my home and its great I hope this means ill have t mobiles coverage soon :) fingers crossed

  • MergerTech

    In today’s business scenario, mergers and acquisitions are the order of the day, and for the providers working in the B2B space, this is a fantastic opportunity to get more company, since new roles are created and company goals are expanded. This results in room for a lot of new alliances, since the company is in super speed method for at least several years. In such a situation, companies that partner with organizations dedicated to prospecting outsourcing drive amazing success.

    Mergers and Acquisitions