T-Mobile USA and MetroPCS are now one company. The combined company will be called T-Mobile US. The network, subscribers, and other assets will be brought together into the combined company. This includes 43 million subscribers as of March 31st.
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There were a couple of hedge funds that opposed T-Mobile USA’s bid for MetroPCS. The hedge funds have now backed off from the lawsuits after an improvement has been added to the offer’s terms. Earlier this week, Paulson & Company and P. Schoenfeld Asset Management indicated that they would support the revised proposal by T-Mobile’s parent company Deutsche Telekom. In the new offer, the combined company would cut the amount of debt that would be assumed by around $3.8 billion. The interest rate of the borrowings will drop around half a percentage point.
T-Mobile USA has announced a new prepaid service called GoSmart Mobile. GoSmart Mobile will not require an annual contract in order and prices will begin at $30 per month for unlimited talk and text. An extra $5 per month will get you unlimited talk, data, and texting. For $45 per month, you will get access to 3G. Customers will be able to buy a SIM kit to use their existing phones at a cost of $8 or they can buy one of the low-priced GoSmart devices. Check out the press release below:
Deutsche Telekom is planning to complete their merger of T-Mobile with MetroPCS between April and June 2013 according to CFO Timotheus Hoettges. “The transaction is not likely be carried out until the second quarter of 2013,” stated Hoettges told in an interview with German newspaper Boersenzeitung.
Yesterday Pulse2 wrote about how Deutsche Telekom (DT) and MetroPCS were in discussions to have T-Mobile and MetroPCS merge. DT is the parent company of T-Mobile. The two carriers would become one company as a result of the deal and DT will hold 74% of the shares as part of the deal. MetroPCS will own 26% in the company and will receive a $1.5 billion check. This may likely cause T-Mobile to cancel the Crown Castle deal to lease their mobile towers for $2.4 billion. The new larger carrier will maintain the T-Mobile branding and John Legere will be the CEO of the combined companies and the MetroPCS CFO will retain his role. As a combined company, T-Mobile will stay as the fourth largest carrier. Below is a press release and video about the merger.
Deutsche Telekom (DT) is currently in talks to merge with MetroPCS. DT is the parent company of T-Mobile and they plan to merge that subsidiary with MetroPCS. Both DT and MetroPCS has confirmed that the two companies are in talks in a statement today. MetroPCS said that a deal may not happen at all.
As the one out of the four major U.S. telecommunications companies that does not offer the iPhone, Deutsche Telekom subsidiary T-Mobile USA has announced their Q2 2012 financial results. Not having the iPhone has cost them dearly because they lost 557,000 customers from the postpaid plans.
LevelUp is a mobile payment service that spun out of SCVNGR. LevelUp can be considered a competitor to Square and PayPal. The company has raised $21 million from T-Ventures, the venture capital subsidiary of Deutsche Telekom. LevelUp has a QR code pay-by-phone application for consumers and a terminal system for merchants. LevelUp is used by around 200,000 consumers and accepts payments at over 3,000 locations in 20 U.S. markets. LevelUp will be using the funding to expand their team, for hiring purposes, and for advertising.
