T-Mobile-MetroPCS Merger Can Reshape Wireless Market: 10 Reasons Why

 
 
By Don Reisinger  |  Posted 2013-04-24 Email Print this article Print
 
 
 
 
 
 
 


5. More regional carriers might get bought up

Now that MetroPCS is off the market, other regional carriers are likely to become inviting acquisition targets. Consolidation appears to be the name of the game in the mobile market. Look for larger firms to follow with regional carrier buyouts of their own.

6. Many MetroPCS shareholders didn’t like it

The merger between T-Mobile and MetroPCS is notable because the latter’s major shareholders didn’t want to see the deal happen. They believed that Deutsche Telekom was undervaluing MetroPCS and the company could do fine on its own. Now that shareholders have overruled those folks, the company has to prove that it will provide a strong return on the massive investment it made to buy up MetroPCS.

7. T-Mobile now has more market credibility

Prior to its MetroPCS merger, T-Mobile was really nothing more than an outlier among major carriers. But with MetroPCS now helping its operation along with the promise of better products and services in the coming months, T-Mobile has some real credibility with customers. And its star might rise because of it.

8. The iPhone plays a role

The iPhone could be a true game-changer in why the MetroPCS-T-Mobile merger matters. Until only recently, Apple wasn’t selling the iPhone on T-Mobile’s network. Now that it is, and now that T-Mobile is bigger, the other carriers need to worry a bit. If the iPhone still wasn’t available on T-Mobile’s network, who would really care what the company was doing?

9. What happens to Sprint?

Now that T-Mobile is larger and has the full backing of its parent company, what will become of Sprint? That carrier, which was the other “small” major network, is running short of cash and has two competing buyout offers that might or might not help its future growth. Sprint might soon become the least-important major carrier. And if so, it’ll fall out of grace with its customers very quickly.

10. T-Mobile puts no-contract pressure on competitors

One of the key aspects of T-Mobile’s sales pitch is the contract-free service plans it’s offering to customers. Now, MetroPCS customers will have the same options (and products and services) available to them, making them a bit happier. That could put pressure on other carriers to follow suit with contract-free terms. Expect the T-Mobile-MetroPCS merger to be a true game-changer in the wireless market.

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