Deutsche Telekom, the German Parent of US cell operator,T-Mobile has announced it would merge its US Unit with cell operator MetroPCS.
T-Mobile USA and MetroPCS said on Wednesday the merge is intended to better compete with the three largest wireless companies and most dominating in US cell services market, Verizon Wireless, AT&T and Sprint.
According to Los Angles Times Thursday the fusion of the two cell operators could give consumers another viable choice in the market besides US phone carriers Verizon and AT&T.
The two carriers said they will improve, under the expected merge, service over fourth generation LTE wireless networks.
Under the terms of the 1.5 billion dollar deal, which is expected to happen in the first half of 2013, MetroPCS shareholders will get 26% ownership of the new entity, Germany’s news agency (DPA) reported the two companies as saying.
Deutsche Telekom, will receive a 74% stake in the company.
T-Mobile USA Inc. is the America’s fourth-largest wireless carrier with 33.2 million mobile customers, while MetroPCS Communications Inc., with 9.3 million subscribers, is the fifth-largest.