T-Mobile USA in talks to buy MetroPCS
updated 05:38 pm EDT, Tue October 2, 2012
Significant issues still to be finalized
T-Mobile USA's parent company has confirmed that it is in talks to buy MetroPCS Communications, and spokespersons from MetroPCS have confirmed that the talks are ongoing. The Boston Herald reported earlier today that the two carriers, might be looking to merge, though such an act would still leave T-Mobile trailing Sprint, the third-largest carrier in the nation. The talks are said to be ongoing, though Deutsche Telekom AG, the German company that owns T-Mobile USA, says that there are still "significant issues" to be finalized and a decision on the deal has not yet been made.
The deal would see the nation's fourth-largest carrier merging with its fifth-largest. MetroPCS' 9.3 million-strong customer base would be added to T-Mobile's existing 33.2 million customers, but the resulting 42.5 million customers would still lag behind Sprint.
MetroPCS and T-Mobile USA currently use different network technologies, meaning that T-Mobile telephones would not be able to operate on MetroPCS' network, and vice versa. Both companies, though, are rolling out 4G networks, and their networks should be interoperable in the future.
Deutsche Telekom shares rose two percent in European trading as the news emerged, while MetroPCS shares were up 17 percent. Shares in Sprint, which was rumored to also be considering buying MetroPCS, fell 4.8 percent.
