Deutsche Telekom today confirmed earlier reports that it is discussing a strategic tie-up with MetroPCS and its T-Mobile USA subsidiary. Deutsche Telekom said that “significant issues have not yet been finalized” regarding the deal, and it has not reached a final decision on the matter. Separately, MetroPCS issued its own statement confirming the talks.
It said, “MetroPCS is in discussions with Deutsche Telekom regarding an agreement to combine T-Mobile USA and MetroPCS. 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.”
T-Mobile and MetroPCS are the fourth- and fifth-largest network operators in the U.S., respectively. T-Mobile provides post- and prepaid services using GSM-based technology and is currently planning to roll out LTE in 2013. MetroPCS provides prepaid services using CDMA technology. It is already deploying LTE in some of its markets. Both companies have 1900MHz and 1700MHz spectrum holdings. Deutsche Telekom has been mulling options for its T-Mobile USA business for years, and failed to sell it to AT&T in 2011.
