On March 12, the United States Federal Communications Commission has approved T-Mobile’s merger with MetroPCS, following the March 6 approval by the Department of Justice. Today, Richardson, Texas-headquartered MetroPCS issued an update informing us that the two partners are announcing receipt of all required regulatory approvals, clearing the way for the merger.
Although the deal is still pending an approval by MetroPCS shareholders, which are scheduled to vote on the merger next month, the transaction has now received a stamp of approval from the Committee on Foreign Investment…
According to MetroPCS’s update, the Committee on Foreign Investment told both companies that “there are no unresolved national security concerns with respect to the transaction and that it has therefore concluded its review.”
With all of the necessary regulatory approvals under their wings, the merger is now only subject to the approval of MetroPCS stockholders, which will convene to vote on the deal on April 12.
The MetroPCS board unanimously recommends that “stockholders vote their shares for all of the proposals relating to the merger”, cautioning “there is no assurance that MetroPCS will be able to deliver the same or better stockholder value” should stockholders vote against the proposed combination.
Following its failed acquisition with AT&T last year, T-Mobile’s parent, Deutsche Telekom, focused on combining its U.S. operations with MetroPCS. The resulting entity stands a chance of surpassing Sprint’s 56 million subscribers while allowing T-Mobile to jumpstart its 4G LTE deployment.
MetroPCS’s wireless services cover 280 million people throughout the country. As of December 31, 2012, the company had approximately 8.9 million subscribers. By comparison, Sprint has 56 million subscribers and T-Mobile USA has around 34 million customers.
The new company is estimated to create a cool 43 million user base and account for 11.7 percent of the US wireless market versus Sprint’s 15.2 percent and the 58.5 percent combined share of AT&T and Verizon. Post-merger, the new firm will retain the T-Mobile moniker and keep MetroPCS as a separate branding.
T-Mobile has scheduled a press conference on March 26 to discuss bringing the end to device subsidies and contracts. The company should also update us on its new plans and the MetroPCS deal.
Though the Deutsche Telekom-owned carrier in January 2013 officially confirmed that it will start selling the iPhone in “three to four” months, we’re expecting T-Mobile to communicate such a major development at a separate media event.