Deutsche Telekom in talks with MetroPCS over T-Mobile USA

Deutsche Telekom in talks with MetroPCS over T-Mobile USA
T-Mobile USA parent Deutsche Telekom is currently in serious discussions with MetroPCS in regards to a merger, sale or other transaction.

The company is considering a "stock-swap transaction that would give the German company control over the combined entity, which would be publicly listed. A second option is for T-Mobile to go public and third option is an outright sale of T-Mobile USA to MetroPCS.



Telekom has been looking to dump T-Mobile USA for over a year, and its $39 billion sale to AT&T last year was blocked by the US Department of Justice.

Despite cheaper prices and a fast network in metro areas, the carrier has been losing contract subscribers to bigger rivals AT&T and Verizon and there has been little stoppage to the exodus.

MetroPCS, a smaller but growing competitor, has been desperately seeking assets from the majors, and would welcome an infusion of customers or spectrum.

T-Mobile USA has 33 million subscribers but lost 1.65 million last year as rivals like Verizon gained over 2 million.

Written by: Andre Yoskowitz @ 9 May 2012 12:42
Tags
T-Mobile Carrier Deutsche Telekom MetroPCS
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  • 1 comment
  • hearme0

    I just don't understand the mentality of one to switch from a viable and significantly less expensive service like T-Mo to switch to a shady and untrustworthy company like Verizon......or an over priced behemoth like ATT. Some people make their decisions without a thought and those that do this are no different. They should never be allowed to make decisions for someone else though.

    9.5.2012 17:50 #1

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