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Tag: MetroPCS

  • T-Mobile, MetroPCS Merger Complete

    T-Mobile, MetroPCS Merger Complete

    Deutsche Telekom, the parent company of T-Mobile USA, today announced that the merger of T-Mobile and MetroPCS Communications is complete. The two companies will now be known under the name T-Mobile US, and stock in the company has begun trading on the New York Stock Exchange under the ticker symbol TMUS.

    The new T-Mobile US board of directors will have 11 members, which will include two board members from MetroPCS. Tim Höttges, the CFO of Deutsche Telekom, will be the board’s chairman.

    “The combination of T-Mobile and MetroPCS creates an even stronger disruptive force in the U.S. wireless market,” said John Legere, president and CEO of T-Mobile US. “Together, as America’s ‘Un-carrier’, we’ll continue our legacy of marketplace innovation by tearing up the old playbook and rewriting the rules of wireless to benefit consumers.”

    The newly rebranded carrier is still the fourth-largest carrier in the U.S. but now has 43 million subscribers, putting it closer to Sprint Nextel’s subscriber numbers. T-Mobile estimates that the companies’ combined 2012 financial results would have reflected $24.8 billion in revenue.

    “By uniting T-Mobile and MetroPCS, we have created a dynamic new player in the wireless industry that has the right strategy and management team in place to compete successfully in today’s marketplace,” said Höttges. “We look forward to realizing the tremendous potential of the new T-Mobile.”

  • T-Mobile MetroPCS Merger Has Been Completed

    T-Mobile MetroPCS Merger Has Been Completed

    Last week, shareholders approved the MetroPCS T-Mobile merger, and today, T-Mobile announced that the deal (the combination of T-Mobile USA and MetroPCS Communications) has been completed.

    The combined company will be known as simply T-Mobile USA, and will begin trading on the New York Stock Exchange today under the ticker “TMUS.”

    John Legere will serve as President and CEO, with former MetroPCS Vice Chairman and CFO, J. Braxton Carter, serving as CFO of the combined company. T-Mobile and MetroPCS will continue to operate as separate brands.

    “By uniting T-Mobile and MetroPCS, we have created a dynamic new player in the wireless industry that has the right strategy and management team in place to compete successfully in today’s marketplace,” said Tim Höttges, currently Deputy CEO and CFO of Deutsche Telekom, who will serve as Chairman of the Board. “We look forward to realizing the tremendous potential of the new T-Mobile.”

    Under the deal’s terms, MetroPCS effected a 1 for 2 reverse stock split, made a cash payment of $1.5 billion to its stockholders (approximately $4.05 per share prior to the reverse stock split), and acquired all of T-Mobile’s capital stock from Deutsche Telekom in exchange for about 74% of MetroPCS’ common stock on a pro forma basis.

    The combined company is headquartered in Bellevue, Washington. It also maintains a “significant” presence in Richardson, Texas.

  • MetroPCS T-Mobile Merger Approved By Shareholders

    Back in October, Deutsche Telekom and MetroPCS Communications announced that they had signed an agreement to combine T-Mobile and MetroPCS. The new company would retain the T-Mobile name and branding.

    Today, Reuters reports that MetroPCS shareholders voted to approve the merger after Deutsche Telekom “sweetened its terms under pressure for activist shareholders”.

    Deutsche Telekom reportedly agreed to reduce the combined company’s debt. Lisa Maria Garza reports:

    Activist shareholder P. Schoenfeld Asset Management had led a proxy battle against the original deal, while biggest MetroPCS shareholder Paulson & Co had also threatened to vote against it. Both investors have said they were pleased with the improved terms.

    The percentage of shareholders who voted in favor of the merger is unknown.

    According to Bloomberg, the transaction is likely to be completed by the beginning of May.

  • T-Mobile Merges With MetroPCS, Still Named T-Mobile

    T-Mobile is still considered one of the for major wireless carriers in the U.S., but it still has a lot of ground to make up if it hopes to catch up to AT&T and Verizon. The failed acquisition of T-Mobile by AT&T proved to actually be a $4 billion windfall for T-Mobile, and it used its newfound billions to begin upgrading its services. While its 4G LTE network is far behind its competitors’ networks, it, along with Sprint, now offer unlimited data plans as a means to compete with AT&T’s and Verizon’s expensive new shared plans.

    Today, T-Mobile parent company Deutsche Telekom and MetroPCS Communications announced that they have signed an agreement to combine T-Mobile and MetroPCS. The new company will retain the T-Mobile name and branding. The combined company will have an estimated 42.5 million subscribers, pulling T-Mobile closer to Sprint’s subscriber numbers, but still leaving it as the fourth-largest wireless carrier in the U.S.

    The agreement is structured as a recapitalization. MetroPCS will declare a 1 for 2 reverse stock split and make a cash payment of $1.5 billion to its shareholders, or about $4.09 per share before the reverse split. MetroPCS will then issue Deutsche Telekom 74% of its common stock, pro forma.

    T-Mobile estimates the combined company will take in around $24.8 billion in revenue in 2012. It also estimated it would bring in $6.3 billion in adjusted earnings, have $4.2 billion in capital expenditures, and have $2.1 billion of free cash flow in 2012.

    “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, CEO of Deutsche Telekom. “The T-Mobile and MetroPCS brands are a great strategic fit – both operationally and culturally. The new company will be the value leader in wireless with the scale, spectrum, and financial and other resources to expand its geographic coverage, broaden choice among all types of customers and continue to innovate, especially around the next-generation LTE network. We are committed to creating a sustainable and financially viable national challenger in the U.S., and we believe this combination helps us deliver on that commitment.”

  • Deutsche Telekom in Discussions with MetroPCS

    German telecommunications company Deutsche Telekom AG, the second largest telecommunications company in Europe, is reportedly discussing a merger of its T-Mobile branch with U.S. cellular provider MetroPCS. According to Bloomberg, Deutsche Telekom is considering moving stocks around in a way that would give it control over both U.S. entities, which could lead to an IPO or a plain sale of T-Mobile USA. Upon these rumors, MetroPCS stock rose 14 percent yesterday.

    Deutsche Telekom tried to sell T-Mobile to AT&T last year for $39 billion, but the sale fell through due to regulatory resistance. T-Mobile also lost 802,000 contracts in Q4 2011, and DTAG has been trying to figure out what to do with the company. Alexandre Iatrides, a Parisian analyst at Oddo & Cie states, “The thing they lack is size and it would be easier to be part of something larger,” describing why DTAG might want to merge T-Mobile with MetroPCS.

    MetroPCS launched its Metro USA nationwide service in 2010, and covers roughly 90% of the U.S. population. It offers cheap plans, starting at $40 a month. The tagline of the provider is wireless for all – I personally subscribed to the service for a while during a stint in Tampa, and it sucks. Still, $40 a month for unlimited use of a feature phone sans contract is hard to beat – you get what you pay for. Basic unlimited talk and text plans start at $25 a month.

    T-Mobile lost another 510,000 contract subscribers during Q1, 2012, though prepaid users, a la MetroPCS, are on the rise. By the end of March, T-Mobile’s customer base was as 33.4 million, the fourth largest in the U.S., behind Verizon, AT&T and Sprint. After news of the potential DTAG/MetroPCS merger hit, DTAG shares rose 4.2% to 8.90 euros, the largest increase since last November. Perhaps directing T-Mobile towards more of a pay-as-you-go model will be key in turning things around.

  • T-Mobile, MetroPCS Want the FCC To Stop Verizon’s Spectrum Grab

    T-Mobile, MetroPCS Want the FCC To Stop Verizon’s Spectrum Grab

    Verizon Wireless has ideas of securing a big chunk of the unused wireless spectrum by purchasing it from companies like Time Warner, Bright House Networks, and Cox Communications. Such an agreement would give Verizon Wireless increased access and control over the wireless spectrum, something Verizon is already assured before the acquisition, considering its position as the leading wireless provider.

    If the acquisition is approved, Verizon Wireless’ control over the wireless spectrum would increase exponentially. With that in mind, perhaps it’s no surprise that T-Mobile and MetroPCS are asking the FCC to block Verizon’s attempt. According to the New York Post, both “lesser” wireless providers are taking the position that such an acquisition would put give Verizon and “excessive concentration” of the wireless spectrum; something akin to a monopoly. MetroPCS indicated Verizon and those companies offering the spectrum did not prove whether or not such a dramatic shift in wireless spectrum control serves the interests of the public.

    It should also be noted that because both dissenters are smaller providers than Verizon, their spectrum allocation is not as big as their lead competitor. From Verizon’s perspective, the wireless spectrum which they are going after is unused, and if the deal is allowed to go ahead as planned, this unused spectrum would be made available to the public, which is indeed a good thing; however, does it need to be acquired by Verizon (or its competitors) before consumers have access to it? Or does Time Warner, et al, lack the business/technical savvy to create a wireless service with the unused spectrum?

    Considering the details of the acquisition, which, according to the New York Post, are as follows:

    n early December, Verizon Wireless announced a deal to buy spectrum from Comcast, Time Warner Cable and Bright House Networks for $3.6 billion. The cable companies had bought the spectrum jointly at an FCC auction in 2006, with loose plans to start a wireless company or form a joint venture with one. Those plans never came to fruition

    It’s clearly easier to sell the unused spectrum than it is to create a reliable wireless network. In fact, based on the details provided, it’s clear neither Time Warner or Bright House are interested in creating such a network in-house. Apparently, they’d rather rely on Verizon to do the heavy lifting.

    Something else to consider, while T-Mobile’s position is understandable, could this be a case of them making waves after the AT&T deal was blocked?

  • Consumer Groups Call On FCC To Investigate MetroPCS

    A number of public interest groups have filed a letter with the Federal Communications Commission requesting the agency investigate claims that new plans being offered by mobile provider MetroPCS block Internet content, applications and websites.

    The public interest groups who sent the letter to the FCC include Free Press, the Center for Media Justice, Media Access Project, New America Foundation Open Technology Institute and Presente.org .

    Last week, MetroPCS, the nation’s fifth-largest wireless provider, announced a new plan under which MetroPCS — not its customers — will decide which Internet sites and services are important. MetroPCS is advertising unlimited talk, text, “Web browsing” and YouTube at a base price of $40 per month — with all other uses only available on higher tiers at a higher cost.

    Chris-Riley The plans would effectively create a “walled garden” that excludes Skype, Netflix and other popular consumer Internet services, putting those service providers at a competitive disadvantage and restricting consumer choice and innovation.

    “MetroPCS’s practices are particularly problematic because, as the company itself recognizes, it disproportionately serves lower-income subscribers, the same audience that is increasingly relying on mobile access to the Web, said Chris Riley, Free Press counsel.

    “A walled garden in mobile broadband leaves a large number of Internet users on the wrong side of the digital divide.”