Two become one: T-Mobile and MetroPCS merger is complete

By Joshua Pramis May 2, 2013

T-mobile metropcs carrier merger — Image used with permission by copyright holder

There’s big news in the mobile carrier world. Earlier today, T-Mobile announced the completion of its merger with well-known (but relative underdog) MetroPCS.

It said that the reason for combining the companies was “to bring wireless consumers exciting new choice while delivering an exceptional experience.” Though just finalized, the combined company, which will still be known as T-Mobile US, Inc., has already begun trading on the New York Stock Exchange with the title TMUS.

Two directors from MetroPCS were kept on as board members for the new company, while the remaining nine are T-Mobile natives. Tim Höttges, chief executive officer and chief financial officer of Deutsche Telekom, the parent company behind T-Mobile, will take the helm as the chairman of the board.

“By uniting T-Mobile and MetroPCS, we have created a dynamic new player in the wireless industry that has the right strategy and management team in place to compete successfully in today’s marketplace,” Höttges said in the release.

Combined, the subscribers now total some 43 million people, a 9 million person increase thank to MetroPCS customers. But despite this tremendous growth, the company still trails behind AT&T, Sprint, and Verizon. However, thanks to this increase in users, the new company is projecting a 3-5 percent growth over the next five years.

It makes sense that the two companies should join forces. MetroPCS has, since its inception, been a cell phone provider offering its customers affordable plans without the burden of a contract. And recently, T-Mobile announced that it would be the first of the major four providers that would be ditching contracts altogether. (Perhaps its reason was because of this merger. We can imagine MetroPCS customers becoming irate if suddenly they needed to enter a contract.)

Will this move help T-Mobile gain momentum in the competition between the big four? We’re skeptical. But in the least, it’s bound to help increase revenue.

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