T-Mobile-MetroPCS Merger Can Reshape Wireless Market: 10 Reasons Why
NEWS ANALYSIS: MetroPCS and T-Mobile have gotten the green light to merge. The combined companies have the potential to change the balance of power in the wireless industry.T-Mobile and MetroPCS might have taken awhile to get to this point, but finally, the two mobile-service providers are going to complete their merger. After Deutsche Telekom made a play for the merger and regulators approved the deal, many of the regional carrier’s larger shareholders said that it wasn’t in the best interests of MetroPCS. They urged their fellow shareholders to not accept the deal. Ultimately, though, those efforts failed. So, now T-Mobile and MetroPCS will come together to become one stronger competitor in the carrier market. So what does it mean for competitors? What does it mean for customers? Most importantly, what does it mean for the company itself? Answering those questions might not be easy, but it’s necessary in order to gain a fuller understanding of the wireless industry. These are the reasons why the T-Mobile-MetroPCS union is important.
1. It’s now a bigger company
3. It’s all about spectrum When it’s all said and done, what every carrier wants right now is spectrum. That is the most important asset MetroPCS brings to the table. MetroPCS has a network that T-Mobile can use to rapidly deploy its 4G LTE network around the country. There’s a finite amount of spectrum available, and all carriers want as much of it as possible. T-Mobile just acquired quite a bit more. 4. It’s all AT&T’s fault Interestingly, AT&T might be the reason the merger between T-Mobile and MetroPCS happened in the first place. If AT&T had actually gotten through the merger deal with T-Mobile, the chances are MetroPCS would have remained an independent player. What’s more, T-Mobile gained billions of dollars through the failed purchase, which allowed Deutsche Telekom to make a move to expand in the United States.