When AT&T was forced to scuttle its bid to acquire T-Mobile last year because of regulatory roadblocks that stemmed from consumer concerns, an executive from T-Mobile’s parent company Deutsche Telekom publicly said, “There is no Plan B.” Today, Deutsche Telekom announced it was going ahead with its plan to acquire a majority stake in MetroPCS and merging its operations with T-Mobile’s.
Well, we finally know what Plan B is.
Deutsche Telekom appears to be really making a go of it with T-Mobile by acquiring MetroPCS, adding its 9 million subscribers to T-Mobile’s 33 million. Besides that, the spectrum both carriers use is very similar, meaning the merged carrier won’t have as many headaches in combining their networks as, say, Sprint and Nextel did.
The two companies made a presentation to investors Wednesday outlining their plan to merge their networks, with completion in 2015. T-Mobile has previously said it’s going to roll out its own LTE network next year, and once MetroPCS turns off its old CDMA network in 2015, it’ll be able to double down — quite literally, in terms of speed — on LTE.
TEKNONUZ OP-ED : This post reflects the opinions of the author and not necessarily that of Teknonuz as a publication.