T-Mobile is straggling with losing subscribers for some time now and according to an analyst at Oddo & Cie. Alexandre Iatrides “the thing they lack is size and it would be easier to be part of something larger.” That’s exactly what they have tried with AT&T but that merge failed. Now there is a rumor of the America’s fourth-largest provider T-Mobile possibly merging with MetroPCS, fifth largest provider.
According to a Bloomberg report, Deutsche Telekom, who owns T-Mobile USA, would have control over the new venture, but it would be listed publicly. However, two companies use different technologies and business model so to merge them may just not be practical. T-Mobile uses GSM standard and MetroPCS code-division multiple access technology.
Neither of the two companies, Deutsche Telekom or MetroPCS, was willing to comment on the matter.
Besides thinking of merge with MetroPCS, T-Mobile might as well consider larger provider as an optional partner, Sprint Nextel. MetroPCS is doing the same thing, talks to other potential partners, after attempt of being acquired by Sprint in February has failed.