As T-Mobile Swallows MetroPCS, It Must Avoid Indigestion


Author: Ina Fried
Coverage Type: analysis
Location:
T-Mobile, 12920 SE 38th St, Bellevue, WA, 98006, United States

T-Mobile has finalized its acquisition of MetroPCS. With the deal done, the company will turn to the task of rapidly integrating the prepaid carrier into its existing business and technology roadmap.

The company has been working on integration plans for months and aims to hit the ground running. T-Mobile plans to keep MetroPCS as a separate brand targeting different demographics. That means operating separate stores and maintaining both brands. Plus, T-Mobile has the opportunity to now expand the brand into markets that MetroPCS had missed out on due to a lack of spectrum. However, T-Mobile hopes to quickly start selling new and renewing MetroPCS customers on a new crop of devices that run on T-Mobile’s spectrum. Meanwhile, T-Mobile has made a number of big moves separate from the MetroPCS deal. Last month it announced a plan to scrap phone subsidies, eliminate long-term contracts and, at long last add the iPhone to its lineup. And the company has spent $4 billion modernizing its network, moving to more widely adopted spectrum and adopting LTE.

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