T-Mobile USA and MetroPCS in merger talks

T-Mobile USA and MetroPCS in merger talks

US operators T-Mobile USA and MetroPCS have confirmed that they are engaged in talks regarding a combination of their operations.

The move follows a failed attempt by AT&T to acquire T-Mobile USA for $39 billion last year.

T-Mobile’s parent company Deutsche Telekom said in a regulatory filing that the combination would be with the intention of creating one company with Deutsche holding the majority of shares.

“There can be no assurances that any transaction will result from these discussions, and the company does not intend to comment further unless and until an agreement is reached,” MetroPCS said in a statement.

Analysts had long speculated that T-Mobile USA would be forced to pursue an acquisition or combination in order to compete with rivals Verizon and AT&T.

Deutsche Telekom appointed former Global Crossing CEO John Legere to lead T-Mobile USA last month.

T-Mobile USA and MetroPCS ranked fourth and fifth in terms of subscribers in the US wireless market in June 2012, with a combined market share of 12.9%, according to TeleGeography.

MetroPCS had 2.8% market share of the country’s 328 million subscribers during the period compared to T-Mobile’s 10.1%, Sprint Nextel’s 17.2%, AT&T Mobility’s 32% and Verizon Wireless’ 33.8%.