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T-Mobile and MetroPCS Merge, Keep T-Mobile Name

By April 25, 2013February 28th, 2023Blog

Shareholders from both T-Mobile and MetroPCS have given the okay for the companies to merge as of yesterday afternoon.

The shareholder okay was the last step in a long merger process that included okays from Federal Communications Commission and the US Justice Department as well as approvals from the boards of both companies. The deal, which has now been finalized, is expected to close May 1st – less than a week from now.

“This is a major step for Deutsche Telekom,” Deutsche Telekom CEO Rene Obermann said publically in his statement on Wednesday. “We have accomplished a lot in the USA recently, for example our network modernization and the new T-Mobile USA management team, which has seen considerable success. And we have finalized the contracts with Apple and MetroPCS. The merger with MetroPCS is extremely important, since it enables us to be more aggressive in the USA.”

In the merger, it was decided the two companies would keep the T-Mobile name, but the flexibility and devices of MetroPCS are expected to come with the company.

Some of the benefits expected can be summarized with one word: flexibility. Not only will T-Mobile now be offering no-contract monthly plans and SIM-only options, MetroPCS users will be able to tap into T-Mobile’s strong LTE network by simply upgrading their phones.

“A combined T-Mobile and MetroPCS will unite two companies with one common vision: challenge the status quo and deliver exceptional wireless experiences for our customers. As America’s Un-carrier, we will redefine the wireless industry,” said T-Mobile’s CEO, John Legere, in a recent statement.

Those who have invested in MetroPCS can expected a little over $4 in cash returned to them in addition to a total of 26% of the combined company. Deutsche Telekom, the company that now owns both T-Mobile and MetroPCS, has decided to hang onto the addition 74%.

If you have either T-Mobile or MetroPCS, be prepared for big changes in areas that include pricing, plan availability, device choice and network coverage.

Chris Forte

Chris Forte, President and CEO of Olmec Systems, has been in the MSP workspace for the past 25 years. Chris earned his Master’s Degree from West Virginia University, graduating Magna Cum Laude. He was a past member of the Entrepreneurs’ Organization, a current member of the New Jersey Power Partners and Executive Association of New Jersey, where he has previously served on its board of directors. In his spare time, Chris enjoys traveling with his family. He also admits to being a struggling golfer and avid watcher of college football and basketball. He currently lives in Boonton Township, NJ with his wife, two daughters, son, and black lab Luna.