The big news today was the Deutsche Telekom (DT) is considering buying MetroPCS (PCS) to merge it its T-Mobile division. While I do believe that T-Mobile needs to do something as does MetroPCS, I’m not positive this is the best fit. Because the companies use different technologies, the conversion to one network can be more difficult than what is initially estimated. I don’t believe MetroPCS customers are as loyal as some of the larger legacy carriers, and I believe T-Mobile has been facing an uphill battle for quite sometime. I believe a T-Mobile and Sprint (S) deal would make more sense creating a much more viable 3rd option, that is capable of the huge capital expenditure requirements in competing with Verizon (VZ) and AT&T (T). Sprint could potentially jump in and become a buyer for PCS, and then of course Leap Wireless (LEAP) is still out there as well. It should be a fun situation to watch.
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