T-Mobile and MetroPCS have reached a deal that will see the two carriers form one operation on the U.S. market. T-Mobile parent company Deutsche Telekom recently confirmed that the company will merge its U.S. operations with prepaid wireless carrier MetroPCS.
MetroPCS shareholders will receive $1.5 billion in cash and a 26 percent ownership stake in the new company, which will continue operations under the T-Mobile brand. While T-Mobile currently operates an HSPA+ network, MetroPCS uses LTE in some areas and CDMA in all others.
The new company will be building a 4G LTE network that uses complementary spectrum from both companies. The carrier will also unite its legacy customers by migrating MetroPCS customers to LTE as they upgrade their handsets. Until the merger is approved, T-Mobileand MetroPCS will continue to operate as independent companies.
Originally posted at LoopyCellphones