Most Read: Business

 Last Update: : AM 05/03/2015(NASDAQ&DJIA)

World Markets from      


Other Market Data from      


Key Rates from      


Blog Contributors

Timothy B. Lee

Timothy B. Lee

Timothy B. Lee covers technology policy, including copyright and patent law, telecom regulation, privacy, and free speech. He also writes about the economics of technology. He has previously written for Ars Technica and Forbes. You can follow him on Twitter or send him email.

Brian Fung

Brian Fung

Brian Fung covers technology for The Washington Post, focusing on electronic privacy, national security, digital politics and the Internet that binds it all together. He was previously the technology correspondent for National Journal and an associate editor at the Atlantic. His writing has also appeared in Foreign Policy, Talking Points Memo, the American Prospect and Nonprofit Quarterly. Follow Brian on Google+ .

Andrea Peterson

Andrea Peterson

Andrea Peterson covers technology policy for The Washington Post, with an emphasis on cybersecurity, consumer privacy, transparency, surveillance and open government. She also delves into the societal impacts of technology access and how innovation is intertwined with cultural development.

Post Tech
About / Where's Post I.T.?   |    Twitter  |   On Facebook  |  RSS RSS Feed  |  E-Mail Cecilia
Posted at 09:36 AM ET, 10/03/2012

T-Mobile, Metro PCS announce merger

FILE-In this Wednesday, Sept. 12, 2012, file photo man using a cellphone passes a T-Mobile store, Wednesday, Sept. 12, 2012 in New York.(AP Photo/Mark Lennihan) (Mark Lennihan - AP)
T-Mobile USA and Metro PCS will merge, the companies announced Wednesday, after getting approval from both company boards.

In a statement, the companies said they will combine their efforts to roll out a high-speed 4G LTE network.

The deal, T-Mobile hopes, will give the new venture the “expanded scale, spectrum and financial resources to aggressively compete with the other national U.S. wireless carriers.”

MetroPCS shareholders will receive $1.5 billion cash and 26 percent ownership in the new venture. T-Mobile USA parent company Deutsche Telekom will have majority control with 74 percent of the stake.

“We are extremely pleased to announce this transaction with MetroPCS, which enhances Deutsche Telekom’s position in the expanding U.S. wireless market,” said René Obermann, the German carrier’s chief executive officer. “The T-Mobile and MetroPCS brands are a great strategic fit – both operationally and culturally.”

Both companies are known for offering cheaper plans — MetroPCS is a no-contract wireless carrier — and have a strong base in the lower end of the market. More importantly, T-Mobile and MetroPCS have rights to LTE spectrum in the same band — meaning that it will be easier for them to work together as they move their networks forward.

With MetroPCS customers, T-Mobile will have approximately 42.5 million subscribers — not enough to overtake Sprint as the third-largest carrier in the United States. But the merger, as The Washington Post reported, will put Sprint in a much tougher spot in the market.

The deal is subject to MetroPCS shareholder and regulatory approval, but is unlikely to face strong objections from regulators, The Post reported. The transaction is expected to close in the first half of 2013.

John Legere, T-Mobile’s president and chief executive, will retain his title with the new company. MetroPCS chief financial officer and vice chairman J. Braxton Carter will be the new company’s chief financial officer.

Though the larger company will retain the T-Mobile name, MetroPCS and T-Mobile will operate as separate consumer units, the release said.

Related stories:

T-Mobile, Metro PCS talk merger, leave questions for Sprint

By  |  09:36 AM ET, 10/03/2012

Read what others are saying

    © 2011 The Washington Post Company