Wednesday, October 3, 2012

T-Mobile Makes Bid for MetroPCS


After last year’s failed merger of T-Mobile and AT&T, they had to develop a new strategic plan for the future of T-Mobile. They are investing more into their network than ever before and now they have made a bid for MetroPCS, the national pre-paid unlimited service in major metropolitan cities. According to the paperwork, the agreement includes $1.5 Billion in cash and a 26% stake in T-Mobile USA. Deutsche Telecom will still own 74% of T-Mobile USA. The deal has been sent for approval by the FCC and is schedule to go through in the first quarter of 2013. From a technical standpoint this could be a disaster considering T-Mobile runs on GSM Technology and MetroPCS runs on CDMA Technology. This is a similar situation to the Sprint/Nextel merger that cost them millions of customers. 

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