T-Mobile, MetroPCS look to eat Sprint's prepaid lunch

T-Mobile and MetroPCS are set to merge, which isn't great for Sprint.

(Credit: T-Mobile USA )

A combining of T-Mobile USA and MetroPCS could make for a potent player in the rough-and-tumble prepaid business.

T-Mobile has over the past few years expanded its no-contract options for consumers, giving it a badly needed source of customer growth. MetroPCS, meanwhile, has long been an aggressive -- albeit small -- provider of prepaid services with experience in running a low-cost business.

Together, the companies could present a challenge to Sprint Nextel, long the biggest champion of no-contract services with multiple prepaid brands under its umbrella. T-Mobile and MetroPCS today touted the establishment of the "leading value-focused wireless carrier" with their deal, and are poised to shake up the low end of the wireless industry.

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