“Deutsche Telekom AG said it’s in talks with MetroPCS Communications Inc. to combine their U.S. wireless businesses, giving T-Mobile USA the greater scale it needs to compete with Verizon Wireless and AT&T Inc.,” Cornelius Rahn, Aaron Kirchfeld and Jeffrey McCracken report for Bloomberg.
“The plan includes putting the U.S. operators into one company in which Deutsche Telekom will hold the majority of shares, the Bonn-based company said in a statement today, confirming a Bloomberg report,” Rahn, Kirchfeld and McCracken report. “Deutsche Telekom’s supervisory board is scheduled to meet in Bonn tomorrow to approve the transaction, people with knowledge of the matter said, asking not to be identified because the plan is confidential.”
Rahn, Kirchfeld and McCracken report, “MetroPCS shares jumped as much as 26 percent to the highest level in 14 months in New York. Deutsche Telekom has been considering a deal with MetroPCS to create a U.S. operator which would be publicly listed, people familiar told Bloomberg in May. T-Mobile USA, with 33.2 million customers at the end of June, or a third of each of market leaders Verizon Wireless and AT&T, is seeking to stem client losses it has suffered partly because it doesn’t have the rights to sell Apple Inc.’s iPhone… T-Mobile USA, the fourth-largest U.S. carrier, has lost 2.76 million contract customers, or more than 10 percent of its subscriber base, in the eight quarters through June.”
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