T-Mobile Merges with MetroPCS for $1.5 Billion, Getting LTE
For the past year, it was rumored that T-Mobile was looking to buy or merge with MetroPCS in order to use the LTE towers Metro already has in place. This seemed like a good idea when I heard about it, but I wondered how they’d handle MetroPCS on the business-side.
Now, T-Mobile and MetroPCS have agreed on merging the two companies, where T-Mobile would be the majority shareholder. T-Mobile will own 74% of the shares, MetroPCS will retain 26% and receive $1.5 Billion.
MetroPCS has been transitioning away from CDMA over the past two years, migrating towards VoLTE (Voice Over LTE) for it’s voice services. This should make the transition from now until 2015 easier for the 9-million plus current MetroPCS subscribers.
T-Mobile will be gaining LTE services in the merger, which is said to be completed by the first half of 2013.