This morning, the reverse merger (little company buys big company) between T-Mobile and MetroPCS was made official. In a final vote made by shareholders, the effects of this deal are set to take place on May 1, resulting in a cash payout to MetroPCS shareholders of $1.5 billion. This deal, heavily sought after by T-Mobile, is just another check on their long list of vast improvements they have made in 2013. 

Their network is starting to become more powerful, they now carry the two most popular smartphones of the year and have also introduced brand new no-contract plans, which could mean more success is headed their way. René Obermann, CEO of Deutsche Telekom Group, had this to say on the news:

We have accomplished a lot in the USA recently, for example our network modernization and the new T-Mobile USA management team, which has seen considerable success. And we have finalized the contracts with Apple and MetroPCS. The merger with MetroPCS is extremely important, since it enables us to be more aggressive in the USA.

We are still awaiting details for what subscribers on both carriers can expect to see, but it will most likely be made quite apparent once May 1 rolls around.

Via: Telekom

T-Mobile and MetroPCS Reverse Merger Approved, Takes Place May 1 is a post from: Droid Life

Today, T-Mobile is one step closer to a merger with MetroPCS after the FCC released a statement giving the two companies their blessing. Since the proposed merger that originated in October, the Department of Justice and FCC have been reviewing the deal and neither have found objections to these two companies getting together.

This doesn’t mean that it is a done deal yet, both companies still need to get together and vote on whether they want to join or not. This would however boost T-Mobile’s reach across the country, giving them more spectrum to support their customers and move securely into that fourth largest carrier spot. As T-Mo ramps up towards LTE in the near future, this will be a good acquisition if they can get the deal done.

Via: Phandroid

Planned T-Mobile and MetroPCS Merger Gets Thumbs Up From the FCC is a post from: Droid Life

Sprint was none too happy when they got the news that T-Mobile and MetroPCS had gotten together and planned a deal for a potential merger. After rumors that the Now Network was planning a counter-offer to MetroPCS, news today suggests that they might hold off on that offer without knowing what T-Mobile has up their sleeve.

Reports say that Sprint met with T-Mobile’s parent company, Detusche Telekom, to discuss the proposal and decided it would be better to wait. Once Deutsche Telekom and T-Mobile file the proposed deal there will be an amount of time that Sprint can take to look over the deal and think about how they want to proceed. This leaves the door open for Sprint to out-bid T-Mobile, but only time will tell who MetroPCS will end up with.

Via: TmoNews

Sprint Will Hold Off Counter Offer on MetroPCS, For Now is a post from: Droid Life

Well it didn’t take long for T-Mobile and MetroPCS to work out the differences in their deal, as the two companies have reached an agreement today. For the low price of $1.5 billion, the parent company of T-Mobile, Deutsche Telekom, gains 74% of the shares in the new company, with MetroPCS retaining the other 26%.

This move sets them up as the “Leading Value-Focused Wireless Carrier” and allows T-Mobile to increase scale, spectrum and resources. Combined, the two companies will have 42.5 million subscribers.

The interesting part of this deal is that both companies will retain their separate user bases for the time being. At some other point down the road things will be properly merged, possibly when the switch to LTE gets closer for both companies. This also still leaves them in the 4th spot in the country, but certainly sets T-Mobile up with room to grow. 

T-MOBILE USA AND METROPCS TO COMBINE, CREATING VALUE LEADER IN U.S. WIRELESS MARKETPLACE

• Combination Establishes the Leading Value-Focused Wireless Carrier
• Accelerates T-Mobile’s Challenger Strategy with Increased Scale, Spectrum and Financial Resources
• MetroPCS Shareholders to Receive $1.5 Billion in Cash and 26% Ownership in Combined Company
• Deutsche Telekom to Receive 74% Stake in Combined Company
• Combination Will Increase Customer and Revenue Scale
• Combined Company Projected to Have 2012 Pro Forma Revenue of $24.8 Billion,
• 42.5 Million Subscribers and Projected Synergies with an NPV of $6-7 Billion

Bonn, Germany; Bellevue, WA; and Richardson, TX – October 3, 2012 – Deutsche Telekom (XETRA: DTE; “Deutsche Telekom”) and MetroPCS Communications, Inc. (NYSE: PCS; “MetroPCS”) today announced that they have signed a definitive agreement to combine T-Mobile USA (“T-Mobile”) and MetroPCS.  This transaction will create the leading value carrier in the U.S. wireless marketplace, which will deliver an enhanced customer experience through a wider selection of affordable products and services, deeper network coverage and a clear-cut technology path to one common LTE network.  The combined company, which will retain the T-Mobile name, will have the expanded scale, spectrum and financial resources to aggressively compete with the other national U.S. wireless carriers.

Deutsche Telekom’s supervisory board and MetroPCS’ board of directors unanimously approved the transaction. The transaction 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 (approximately $4.09 per share prior to the reverse stock split) and acquire all of T-Mobile’s capital stock by issuing to Deutsche Telekom 74% of MetroPCS’ common stock on a pro forma basis.  Deutsche Telekom has also agreed to roll its existing intercompany debt into new $15 billion senior unsecured notes of the combined company, provide the combined company with a $500 million unsecured revolving credit facility and provide a $5.5 billion backstop commitment for certain MetroPCS third-party financing transactions.

The combined company will be a stronger competitor and will be well-positioned to drive future growth.  Based on analyst consensus estimates for 2012, the combined company is expected to have approximately 42.5 million subscribers, $24.8 billion of revenue, $6.3 billion of adjusted EBITDA, $4.2 billion of capital expenditures and $2.1 billion of free cash flow (defined as EBITDA less capital expenditures) in 2012.

“We are extremely pleased to announce this transaction with MetroPCS, which enhances Deutsche Telekom’s position in the expanding U.S. wireless market,” said René Obermann, Chief Executive Officer of Deutsche Telekom.  “The T-Mobile and MetroPCS brands are a great strategic fit – both operationally and culturally.  The new company will be the value leader in wireless with the scale, spectrum and financial and other resources to expand its geographic coverage, broaden choice among all types of customers and continue to innovate, especially around the next-generation LTE network.  We are committed to creating a sustainable and financially viable national challenger in the U.S., and we believe this combination helps us deliver on that commitment.”

The transaction significantly accelerates T-Mobile’s Challenger Strategy and the combined company will be a strong, national competitor by:

• Combining T-Mobile and MetroPCS’ complementary spectrum to provide greater network coverage, deeper LTE network deployment and a path to at least 20×20 MHz of 4G LTE in many areas.  Existing MetroPCS customers will be migrated to a common LTE-based network as they upgrade their handsets;
• Increasing scale, which allows the combined company to secure more compelling handsets, content and applications;
• Projecting approximately $6-7 billon (net present value) of cost synergies and additional upside from revenue synergies;
• Capitalizing on its leading position as a provider of fast growing no-contract services;
• Offering a wider selection of attractive, competitively priced plans to better serve the marketplace, including contract, no-contract monthly, SIM-only, pay-as-you-go and mobile broadband services;
• Introducing MetroPCS’ plans and services to a larger number of new areas to complement T-Mobile’s offerings; and
• Using its stronger network to advance its B2B offerings and MVNO platform.

The transaction will enhance the financial position of the combined company.  Highlights include:

• Delivering expected five-year compounded annual growth rates in the range of 3% to 5% for revenues, 7% to 10% for EBITDA and 15% to 20% for free cash flow;
• Targeting an EBITDA margin in the range of 34% to 36% at the end of the five-year period and achievable projected cost synergy realization with an annual run-rate of $1.2-1.5 billion; and
• Having increased financial flexibility with direct access to the debt and equity capital markets.

John Legere, President and Chief Executive Officer of T-Mobile, said: “The combination with MetroPCS is another logical and significant step that will accelerate our Challenger Strategy and enable us to deliver amazing, affordable and trusted 4G services, while providing opportunities to expand geographic territories and serve more customers.  Our enhanced spectrum position will be the foundation for a faster and more reliable network, and will allow us to deploy a deeper and more robust LTE rollout, particularly in major metropolitan areas.  We will be a stronger, value-focused competitor, providing customers with offerings such as our Unlimited Nationwide 4G Data and ‘bring your own device’ plans.  These features, along with our ability to react with greater speed and effectiveness to customer and market opportunities, will deliver value to our customers, business partners, employees and shareholders.”

Roger D. Linquist, Chairman and Chief Executive Officer of MetroPCS, said: “We are excited about this agreement to combine with T-Mobile, which, upon closing, provides our shareholders with an immediate cash payment and allows them to participate in the significant upside potential of the combined company.  Through the convergence of both companies to LTE technology, the combined company will provide cutting-edge 4G LTE services and accelerate its roll-out of 4G LTE.  In addition, this combination will allow MetroPCS to expand its no-contract offerings into new major metro areas and enhance our combined spectrum portfolio, which provides the potential to offer 4G LTE over at least a full 20×20 MHz in many metro areas.  Importantly, MetroPCS and T-Mobile have the same network strategies and LTE networks in the same spectrum bands, which we believe will accelerate the deployment of advanced services to our customers.  Ultimately, this combination will create a stronger wireless provider nationally with broader value offerings to better serve our combined customers and drive shareholder value.”

Upon consummation of the transaction, the combined company is expected to continue trading on the New York Stock Exchange.  Mr. Legere, currently President and Chief Executive Officer of T-Mobile, will serve as President and CEO of the new company and J. Braxton Carter, currently Chief Financial Officer and Vice Chairman of MetroPCS, will be the CFO.  The company will operate T-Mobile and MetroPCS as separate customer units, led by Jim Alling, currently Chief Operating Officer of T-Mobile, and Thomas Keys, currently President and Chief Operating Officer of MetroPCS, respectively.

After closing, the company’s headquarters will be in Bellevue, Washington and it will retain a significant presence in Dallas, Texas.  The combined company will have an 11-member board of directors, including a number of members appointed by Deutsche Telekom consistent with its equity ownership.

The transaction is subject to MetroPCS shareholder approval, regulatory approvals and other customary closing conditions.  The transaction is expected to close in the first half of 2013.

Morgan Stanley acted as lead financial advisor and issued a fairness opinion to the supervisory board of Deutsche Telekom.  Lazard acted as financial advisor to Deutsche Telekom.  Wachtell, Lipton, Rosen & Katz, Cleary Gottlieb Steen & Hamilton LLP, K&L Gates, and Wiley Rein LLP are serving as legal counsel to T-Mobile and Deutsche Telekom.

J.P. Morgan acted as lead financial advisor to MetroPCS and also advised MetroPCS with regard to post transaction capital structure.  Credit Suisse Securities (USA) LLC also acted as a financial advisor to MetroPCS.  Evercore Partners acted as financial advisor to the special committee of the Board of Directors of MetroPCS and issued a fairness opinion.  Gibson, Dunn & Crutcher LLP, Paul Hastings and Telecommunications Law Professionals are serving as legal counsel to MetroPCS.  Akin Gump and Fulbright & Jaworski served as counsel to MetroPCS’ special committee.

T-Mobile and MetroPCS Will Officially Merge, Ink $1.5 Billion Deal is a post from: Droid Life

Reports out of both Bloomberg and Reuters this morning, speak of talks between Deutsche Telekom and MetroPCS, in hopes of merging T-Mobile with the smaller U.S. carrier. One source went as far as saying the “deal is close” while others were quick to point out that it’s “not certain” just yet.

If this deal were to go down, you can imagine that it would immediately help boost T-Mobile who has been losing customers in droves after their attempted merger with AT&T was denied. There subscriber count would jump to over 40 million, they would likely gain similar spectrum to what they already own, and potentially, the strength to finally build out an LTE network.

Nothing is official or final at this point, but the talks seem to be serious.

Via:  Bloomberg | Reuters

Report: T-Mobile in Talks to Merge With MetroPCS is a post from: Droid Life

The world’s first “commercially available” Voice Over LTE (VoLTE) network launched today, but it wasn’t from a carrier that you would have expected to be first. MetroPCS takes the cake this time around, something they should actually be proud of.

VoLTE is a data service that will transform the industry once it is widely adopted. Current carrier networks that have 4G LTE capabilities still rely on CDMA or GSM to handle their voice calls and texting, but with VoLTE, data takes care of it all. Call quality and stability should be greatly improved once you have the entire process handled by data. We would assume that battery life on devices will also become much more efficient with there being no need to power a second 3G or 2G radio, however, devices of that nature may still be a ways out.

Along with this announcement of the first VoLTE network, MetroPCS is also announcing the first phone to take advantage of it, the LG Connect 4G.

Fun news, right?

Once Verizon covers the country in 4G LTE over the next year, you can imagine that they will start to ready VoLTE service of their own. They have reportedly begun testing in a couple of markets and have said that they could start rolling it out in 2013 to the public. By the end of 2013, they may even offer VoLTE-only devices.

MetroPCS Launches World’s First Commercially Available Voice Over LTE Service and VoLTE-Capable 4G LTE Smartphone

DALLAS, Aug. 7, 2012 /PRNewswire/ — MetroPCS Communications, Inc. (NYSE: PCS) today reached another innovation milestone by announcing the world’s first commercial launch of Voice over LTE (VoLTE) services, availability of the world’s first VoLTE-capable handsets and the first sale of a VoLTE-capable handset at one of the company’s Dallas/Fort Worth store locations. MetroPCS is selling the new VoLTE-capable LG Connect 4G Android™ smartphone at select U.S. stores and will continue to roll out VoLTE services and phones in the coming weeks.

“Being the first operator globally to reach this industry first speaks volumes about our company’s innovative spirit and passion to achieve goals that we believe will have long-term benefit for our customers and for the company,” said Roger Linquist, chairman and chief executive officer of MetroPCS. “The initial move to LTE and this move to VoLTE allow us to achieve significant spectral efficiencies and will increase network capacity so that we can enhance the 4G LTE experience that our customers have today at a tremendous value. VoLTE also provides a foundational capability for future Rich Communication Services (RCS), which we plan to launch later this year.”

The addition of VoLTE capabilities to MetroPCS’ 4G LTE handsets will be transparent to consumers as they continue to enjoy all the voice and 4G LTE data services with which they are already familiar. Calls to and from the handset will use VoLTE, regardless of the handset or network used on the other end of the call.

MetroPCS was the first U.S. carrier to deploy a commercial 4G LTE network in September 2010 and has since built out its 4G LTE network to cover roughly 90 percent of its CDMA footprint.

About MetroPCS Communications, Inc.

Dallas-based MetroPCS Communications, Inc. (NYSE: PCS) is a provider of no annual contract, unlimited wireless communications service for a flat rate. MetroPCS is the fifth largest facilities-based wireless carrier in the United States based on number of subscribers served. With Metro USA(SM), MetroPCS customers can use their service in areas throughout the United States covering a population of over 280 million people. As of June 30, 2012, MetroPCS had approximately 9.3 million subscribers. For more information please visit www.metropcs.com.

MetroPCS Launches World’s First VoLTE Network and Smartphone, Take That Big Four! is a post from: Droid Life

Just wanted to quickly share this MetroPCS truck that has found itself with the Ice Cream Sandwich fever that so many of us have had for the last couple of weeks. It swung by the New York Comic Con to feed convention goers just days before Android 4.0 will be unveiled to the world in Hong Kong.

Cheers Ryan and Justin!

MetroPCS Shows Some Android and Ice Cream Sandwich Love Truck-style at Comic Con is a post from: Droid Life

Today in other Android news…

• T-Mobile joins Verizon in the fight against Apple hating on Samsung.  Your turn AT&T.
• Samsung will now pay our the rear to Microsoft for all Android devices sold.  Bleh.
• Toshiba is willing to take another shot at the tablet game with this 7″ model.
• AT&T Galaxy S2 vs. T-Mobile Galaxy S2.  Who wins?
• Galaxy Tab 10.1 heading to T-Mo at some point – we wonder, why?
• The HTC Raider pops up down under (wait?) sporting 4G and lookin’ fly.

All of the rest of your non-Verizon Android-related news is available every day over at Android Life.

T-Mobile Speaks Out Against Apple vs. Samsung, Microsoft and Sammie Form Partnership, New Toshiba 7″ Tab [from AL] is a post from: Droid Life