T-Mobile/MetroPCS Merger

[mellimel2212]

Like it or not, Sprint will eventually follow suit. So the question is do they go after Metro's counterpart Leap and their 6 million or so prepaid subscribers? Alternatively, do they look at US Cellular and possibly C-Spire to enhance their postpaid subscriber base and their coverage outside of large metro, urban areas in a number of states. Interesting times ahead.

 

Sprint already has nv to help those rural areas with lil coverage and has clearwire as a backup

 

Sent from my White Epic 4g Touch rockin Jellybean

[bigsnake49]

Sprint already has nv to help those rural areas with lil coverage and has clearwire as a backup

 

Sent from my White Epic 4g Touch rockin Jellybean

 

They don't even have coverage in some of the areas that USCC and C-Spire cover. They will have to build new sites and I don't know if they can make any money doing that.

[iansltx]

If I was T-Mobile and if this deal went through, I would immediately ink a deal with Sprint for voice and data roaming on CDMA (but not LTE), effectively making MetroPCS's subscribers MVNO customers of Sprint for the time being. Sprint is selling airtime cheaply enough that this is a reasonable deal.

 

Why not LTE? Because MetroPCS has LTE and T-Mobile doesn't quite yet...and you can have phones using LTE on one network and 1x on another, particularly with Sprint eHRPD deployed.

 

Then push a custom PRL to all MetroPCS handsets that re-marks Sprint SIDs in MetroPCS areas as preferred, shifting all CDMA traffic off of MetroPCS's network. Then turn off CDMA entirely on MetroPCS, leaving subscribers roaming on Sprint for the time being for the cheap stuff (voice and texting). Use the extra spectrum to up LTE channels on MetroPCS sites to 5MHz for the time being, using only MetroPCS spectrum (a data network is easier to admin than a voice network, and TMo will have LTE soon enough anyway).

 

At some point during all of this, you've stopped selling CDMA phones on MetroPCS, converting the company on a going-forward basis to a T-Mobile MVNO running on HSPA+. Maybe rename Monthly4G to MetroPCS and call it a day. Subscribers who want a new phone and are on CDMA MetroPCS (which tends to have inferior coverage to T-Mobile anyway) can get a T-Mobile phone at a discount, incrementally reducing TMo's roaming bill to Sprint.

 

The next phase of the plan happens when T-Mobile rolls out LTE in a given area. All MetroPCS phones that have LTE onboard support LTE in AWS, so when a T-Mobile LTE site comes online, the redundant MetroPCS site(s) in its shadow can be shuttered. In fact, by the time this deal goes through, T-Mobile may already have big markets like Dallas upgraded to LTE, allowing them to take MetroPCS entirely offline in the city rather than just turning CDMA off on MetroPCS cell sites. Once MetroPCS sites are offline, T-Mobile has that much more spectrum to use for its LTE-A network, built on NSN and Ericsson equipment.

 

But what about MetroPCS's current LTE network? Well, its vendors are Samsung and Alcatel-Lucent if I remember correctly. T-Mobile's vendors are NSN and Ericsson. My bet is that T-Mobile sells the MetroPCS equipment to Sprint at a discount, since Sprint can then just ship the gear to the correct parts of the country, leaving both companies with vendor-coordinated LTE rollouts nationwide.

 

As an added LTE bonus, if T-Mobile can get VoLTE working on the NSN/Ericsson equipment, they have even less of an MVNO bill to pay to Sprint. Though there aren't very many VoLTE capable MetroPCS handsets out there at this point, and there probably still won't be if the merger goes through.

 

Hey, T-Mobile, wanna hire me for biz dev?

 

EDIT: Ericsson and Samsung are MetroPCS's LTE vendors, not AlcaLu and Samsung. Now the big question is whether MetroPCS's equipment is too old to support LTE-A via a software upgrade and LTEr9 now. If it's new enough, T-Mobile can either reuse the equipment internally (Ericsson) or sell it to Sprint (Ericsson or Samsung). If it's r8-only, maybe sell to CricKet? lol

[jefbal99]

If I was Sprint and this goes through, I would offer to let Metro customers bring over their Metro handsets for free and not require them to buy Sprint compatible handsets. Are there any Metro phones that don't roam on 1900PCS? The worst that can happen is to force T-Mobile to offer former MetroPCS customers free handsets, thereby making this merger even more expensive.

 

The impediment to Sprint buying/merging with anybody is that their stock is too low.

 

Do Metro handsets have 850 CDMA? They'd need that for Sprint's roaming agreements with Verizon. I could see that as a hold up as a Metro handset couldn't use the full network available to a Sprint Handset

[S4GRU]

Do Metro handsets have 850 CDMA? They'd need that for Sprint's roaming agreements with Verizon. I could see that as a hold up as a Metro handset couldn't use the full network available to a Sprint Handset

 

Why do they have to roam on Verizon 850 too? Roaming on Sprint would be more than enough to give Metro customers. Sprint native coverage is far greater than Metro's coverage.

 

Robert

[dmchssc]

Metro already has roaming agreements with Sprint and Verizon. Sprint appears as native coverage, and Verizon coverage is free-texing and $0.25 (or something higher) per-minute voice. I'd expect those agreements to carry over in a merger, at least for existing subscribers.

[jefbal99]

Why do they have to roam on Verizon 850 too? Roaming on Sprint would be more than enough to give Metro customers. Sprint native coverage is far greater than Metro's coverage.

 

Robert

 

There was a suggestion that Sprint allow Metro customers to come to Sprint as New contracts, but with their MetroPCS device, rather than buy a new Sprint branded phone. Both support the PCS A-F band. I was asking in the Metro phones could roam onto Verizon because that is a Sprint roaming partner. I saw it as a hiccup in the suggestion of former Metro customers using their devices natively as Sprint users on the Sprint Network (including its roaming partners)

[S4GRU]

There was a suggestion that Sprint allow Metro customers to come to Sprint as New contracts, but with their MetroPCS device, rather than buy a new Sprint branded phone. Both support the PCS A-F band. I was asking in the Metro phones could roam onto Verizon because that is a Sprint roaming partner. I saw it as a hiccup in the suggestion of former Metro customers using their devices natively as Sprint users on the Sprint Network (including its roaming partners)

 

When a company makes a roaming deal with Sprint, it only covers the Sprint network, not Sprint's roaming partners too. If Metro needed/wanted to roam on VZW 850, they would have to make a roaming agreement with Verizon. It would not be covered under their roaming deal with Sprint. Sprint doesn't have the right to resale VZW service.

 

Robert

[jefbal99]

 

When a company makes a roaming deal with Sprint' date=' it only covers the Sprint network, not Sprint's roaming partners too. If Metro needed/wanted to roam on VZW 850, they would have to make a roaming agreement with Verizon. It would not be covered under their roaming deal with Sprint. Sprint doesn't have the right to resale VZW service.

 

Robert[/quote']

 

You are missing the point. The theory was t mobile buys metro and shuts down their pcs operation. Then Sprint allows former metro/t mobile customers to become new Sprint subscribers, but bring their metro handset rather than buying a new Sprint handset. I took it as an incentive to get new customers, but not have them outlay for a new phone. I questioned if the devices would be capable of utilizing all of so Sprint's roaming agreements...

[S4GRU]

You are missing the point. The theory was t mobile buys metro and shuts down their pcs operation. Then Sprint allows former metro/t mobile customers to become new Sprint subscribers, but bring their metro handset rather than buying a new Sprint handset. I took it as an incentive to get new customers, but not have them outlay for a new phone. I questioned if the devices would be capable of utilizing all of so Sprint's roaming agreements...

 

Gotcha. Two different subjects being discussed in this thread and got my wires crossed. If their device doesn't have the capability to roam on VZW 850, then, they would miss out on that aspect, but could still use it on the network. However, if Metro Prepaid customers wanted to come to Sprint, they most likely would be drawn to a Sprint Prepaid brand, right? Which they do not offer off Sprint network coverage the last time I checked.

 

Robert

[cdiao]

Gotcha. Two different subjects being discussed in this thread and got my wires crossed. If their device doesn't have the capability to roam on VZW 850, then, they would miss out on that aspect, but could still use it on the network. However, if Metro Prepaid customers wanted to come to Sprint, they most likely would be drawn to a Sprint Prepaid brand, right? Which they do not offer off Sprint network coverage the last time I checked.

 

Robert

 

Metro's targeted demographics and distribution footprint is heavily urban. In fact if you have MetroPCS on Google News Alert, at least once a week is another story of a hold-up or robbery at a Metro PCS store (since it is cash collection point for bill pmts for customers who do not have checking accts or credit/debit cards). For the 1%-3% of Metro customers that ever roam on Verizon 850, they will simply be part of the 3%+ monthly churn that goes elsewhere.

[S4GRU]

Metro's targeted demographics and distribution footprint is heavily urban. In fact if you have MetroPCS on Google News Alert, at least once a week is another story of a hold-up or robbery at a Metro PCS store (since it is cash collection point for bill pmts for customers who do not have checking accts or credit/debit cards). For the 1%-3% of Metro customers that ever roam on Verizon 850, they will simply be part of the 3%+ monthly churn that goes elsewhere.

 

Excellent point.

 

Robert

[Bob Newhart]

I don't get why T-Mobile would buy (or merge) with MetroPCS, as it isn't even using the spectrum that is has allocated right now.

The same for Sprint's national licenses, they don't cover most over the areas they are allowed to.

 

The 'national' companies should be forces to return unused spectrum to the regional carriers. Grrrr

[jefbal99]

However, if Metro Prepaid customers wanted to come to Sprint, they most likely would be drawn to a Sprint Prepaid brand, right? Which they do not offer off Sprint network coverage the last time I checked.

 

Robert

 

I didn't know that, thanks for the info. I learn from every post on this forum

[bigsnake49]

Do Metro handsets have 850 CDMA? They'd need that for Sprint's roaming agreements with Verizon. I could see that as a hold up as a Metro handset couldn't use the full network available to a Sprint Handset

 

These are prepaid handsets. Virgin and Boost customers don't get Verizon/USCC roaming either.

[newboyx]

Well that was quick

 

 

http://m.engadget.com/2012/10/03/deutsche-telekom-and-metropcs-boards-approve-t-mobile-merger/?icid=eng_latest_art

Srnt from my EVO using Tapatalk 2

 

 

[Rawvega]

http://www.reuters.c...tionNews&rpc=43

 

 

FRANKFURT | Wed Oct 3, 2012 7:56am EDT

(Reuters) - The board of MetroPCS has approved to merge with Deutsche Telekom's T-Mobile USA unit, German newspaper Financial Times Deutschland said on its website on Wednesday, citing unidentified people familiar with the process.

 

According to the newspaper the two plan to list the new entity, in which Deutsche Telekom will hold a 74 percent stake and MetroPCS 26 percent.

MetroPCS will also receive $1.5 billion in cash, Financial Times Deutschland said.

Deutsche Telekom, T-Mobile USA and MetroPCS could not immediately be reached for comment.

Deutsche Telekom announced on Tuesday it is in talks to merge its T-Mobile USA unit with smaller rival MetroPCS, in a move that could pave the way for the German company to eventually exit the U.S. wireless market.

 

(Reporting by Harro ten Wolde in Frankfurt and Liana Baker in New York)

 

DT has played this masterfully IMO.

[marioc21]

Looks like the deal is official.

 

http://www.engadget.com/2012/10/03/deutsche-telekom-and-metropcs-boards-approve-t-mobile-merger/

 

Only $1.5 Billion. I think that's a lot less than then the supposed deal Sprint had with them earlier.

[marioc21]

These are prepaid handsets. Virgin and Boost customers don't get Verizon/USCC roaming either.

 

MetroPCS does offer plans with nationwide extended coverage. So those phones have to roam on someone's network. Don't know if Metro roams with Sprint or Verizon.

[Rawvega]

 

 

Only $1.5 Billion. I think that's a lot less than then the supposed deal Sprint had with them earlier.

 

$1.5B plus a 26% stake in the new entity. Depending on the value of the new company it could be more or less than the prospective deal that they supposedly had with Sprint.

[jefbal99]

Wow, that was crazy fast...

 

I like how they call it a reverse merger. Time for MetroPCS to put on its "big boy pants" and see if it can really hang...

[bigsnake49]

MetroPCS does offer plans with nationwide extended coverage. So those phones have to roam on someone's network. Don't know if Metro roams with Sprint or Verizon.

 

So offer them plans with extended coverage. If they roam on Verizon or USCC offer them the exact same price or $5 better. Offer them the iPhone 5 or GS III for a discount to move to Sprint's prepaid brands.

[marioc21]

$1.5B plus a 26% stake in the new entity. Depending on the value of the new company it could be more or less than the prospective deal that they supposedly had with Sprint.

 

The engadget headline didn't really get that. Haven't seen anything yet on what the new Company's value will be. Wonder if they'll keep the T-Mobile brand name or change it to something else?

 

I bet the $1.5 billion in cash was a good sweetener for Metro over Sprint.

[jefbal99]

The engadget headline didn't really get that. Haven't seen anything yet on what the new Company's value will be. Wonder if they'll keep the T-Mobile brand name or change it to something else?

 

I bet the $1.5 billion in cash was a good sweetener for Metro over Sprint.

 

T-Mobile will still be the name according to Engadget

[marioc21]

I didn't know that, thanks for the info. I learn from every post on this forum

Gotcha. Two different subjects being discussed in this thread and got my wires crossed. If their device doesn't have the capability to roam on VZW 850, then, they would miss out on that aspect, but could still use it on the network. However, if Metro Prepaid customers wanted to come to Sprint, they most likely would be drawn to a Sprint Prepaid brand, right? Which they do not offer off Sprint network coverage the last time I checked.

 

Robert

 

But Sprint's prepaid phones use Sprint's native network which covers more area than Metro's. Plus, I tend to think that MetroPCS customers probably don't roam outside of major cities that much anyway, so roaming coverage probably isn't that big a deal. Metro and Sprint's Boost brand may have a lot of demographic similarities.