Andre Yoskowitz
9 May 2012 12:42
T-Mobile USA parent Deutsche Telekom is currently in serious discussions with MetroPCS in regards to a merger, sale or other transaction.
The company is considering a "stock-swap transaction that would give the German company control over the combined entity, which would be publicly listed. A second option is for T-Mobile to go public and third option is an outright sale of T-Mobile USA to MetroPCS.
Telekom has been looking to dump T-Mobile USA for over a year, and its $39 billion sale to AT&T last year was blocked by the US Department of Justice.
Despite cheaper prices and a fast network in metro areas, the carrier has been losing contract subscribers to bigger rivals AT&T and Verizon and there has been little stoppage to the exodus.
MetroPCS, a smaller but growing competitor, has been desperately seeking assets from the majors, and would welcome an infusion of customers or spectrum.
T-Mobile USA has 33 million subscribers but lost 1.65 million last year as rivals like Verizon gained over 2 million.