The planned merger between nationwide carrier T-Mobile USA and prepaid provider MetroPCS is not a repeat of the failed merger between Sprint and Nextel back in 2005, T-Mobile CEO John Legere said during a conference call with the press today.
A MetroPCS store.
(Credit: Greg Sandoval/CNET )
This deal, he said, is about gaining more spectrum in an effort to challenge bigger competitors like AT&T and Verizon Wireless.
"This is not a Sprint/Nextel do-over," Legere said. "This deal is not about simply surviving. It's about driving growth. When we add MetroPCS to the aggressive challenger strategy (of T-Mobile) it will accelerate things. This is not about filling in holes."
T-Mobile and MetroPCS both need more wireless spectrum to build out their next-generation wireless 4G LTE networks. And as luck would have it, the companies each own complimentary slices of the same spectrum, that when combined could provide the newly formed T-Mobile an opportunity to build a faster and higher capacity LTE network in many large cities that surpasses even the network of Verizon Wireless, which is today's LTE leader.
On Wednesday, T-Mobile's parent company, Deutsche Telekom, announced plans to buy a majority stake in MetroPCS and combine the company with T-Mobile to create a new publicly traded company that will be branded T-Mobile. When talk of the merger first surfaced months ago, and as th... [Read more]
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