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.
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.
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. (more…)
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
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. (more…)
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!
Today in other Android news…
All of the rest of your non-Verizon Android-related news is available every day over at Android Life.