Deutsche Telekom is eyeing an acquisition of wireless carrier MetroPCS, the company said, for a possible merger with Deutsche Telekom subsidiary, T-Mobile USA.
Under the agreement, the company said, the German telecommunications giant would hold the majority of shares in any new company. The New York Times reported that while Deutsche Telekom said that the proposed deal has not yet been resolved, unnamed sources “briefed on the negotiations” say that the deal could be announced as soon as Wednesday.
T-Mobile USA and MetroPCS could not immediately be reached for comment on the talks.
A Deutsche Telekom acquisition of MetroPCS would help T-Mobile become a stronger competitor against Verizon, AT&T and Sprint. Since U.S. regulators put a proposed merger with AT&T on ice nearly a year ago, the nation’s fourth-largest carrie has been aggressively building out its network. A June deal with Verizon for spectrum will help the company add to its forthcoming 4G LTE network.
MetroPCS is also building out its LTE network, but the rest of its holdings are not compatible with T-Mobile’s.
There had been talks that Sprint, the nation’s third-largest carrier, was in talks for MetroPCS, but the New York Times reported in February that Sprint’s board rejected the deal.