Friday, May 25, 2018
Business

T-Mobile, MetroPCS plan to unite to battle larger rivals

NEW YORK — T-Mobile and MetroPCS have agreed to combine their struggling cellphone businesses in a deal aimed at letting them compete better with their three larger rivals.

The combined company will use the T-Mobile brand and have about 42.5 million subscribers. Although T-Mobile will stay No. 4 among U.S. wireless companies, it will get access to more space on the airwaves, a critical factor as cellphone carriers try to expand their capacity for wireless broadband.

That could ultimately mean more choices and better service for customers, though Forrester Research analyst Charles Golvin doesn't believe the deal will make a "revolutionary difference" for U.S. customers. That said, MetroPCS customers will probably have to buy new phones at some point over the next three years as they are moved over to T-Mobile's network.

Both companies have faltered in the highly competitive U.S. cellphone market led by Verizon Wireless and AT&T Inc. T-Mobile has 33.2 million subscribers, well behind No. 3 Sprint Nextel's 56 million.

Under the new deal, Deutsche Telekom will hold a 74 percent stake in the combined company, while MetroPCS Communications' shareholders will own the remainder. MetroPCS shareholders will also receive a payment of about $1.5 billion.

"We are committed to creating a sustainable and financially viable national challenger in the U.S., and we believe this combination helps us deliver on that commitment," Deutsche Telekom chief executive Rene Obermann said in a statement.

Deutsche Telekom said the combined T-Mobile-MetroPCS will have revenue of about $24.8 billion, based on analysts' estimates. The deal is also expected to lead to about $6 billion to $7 billion in combined savings.

The acquisition, scheduled to close in the first half of 2013, will probably affect MetroPCS subscribers the most. By the end of 2015, the MetroPCS wireless network is expected to be shut down, and customers will be moved over to the new company.

That means they will have to update their mobile devices at some point. But Golvin believes that is probably good in the long run, as customers will get more choices in picking out phones.

Even if not stalled by regulatory hurdles, a linkup will nonetheless be complicated by the fact that MetroPCS and T-Mobile use different network technologies. That means MetroPCS phones would not work on T-Mobile USA's network, and vice versa. However, both companies are deploying the same fourth-generation, or 4G, technology, so they're on a path to harmonizing their networks.

Obermann said the new company will have the "resources to expand its geographic coverage, broaden choice among all types of customers and continue to innovate, especially around the next-generation LTE network."

As for phone bills, MetroPCS customers, who now get low-cost, contract-free plans, might be pressured to sign up for two-year agreements, which are more lucrative for cellphone companies. But T-Mobile also offers contract-free plans, so MetroPCS customers who want to stick with such plans should have more options, Golvin said.

Comments
Denis Phillips, hurricane season guru, talks his signature beer, suspenders and Rule #7

Denis Phillips, hurricane season guru, talks his signature beer, suspenders and Rule #7

SAFETY HARBOR ó Denis Phillips cracks a pop-top and pulls a can that looks a lot like him to his lips."Itís got that citrusy feel to it," he says. "Which is a Florida thing. Thatís not bad." Indeed, thereís a grapefruit finish to Rule #7 Hurricane Sa...
Updated: 3 hours ago
At Pinellas Parkís iconic model train store, an ownership change goes off the rails

At Pinellas Parkís iconic model train store, an ownership change goes off the rails

PINELLAS PARK ó The iconic model train store that has sat at U.S. 19 and Haines Road for close to 30 years announced on its website it will be moving to another location."Itís difficult trying to stock a store thatís bigger than the reality is these ...
Published: 05/25/18
Behind the deal: $52 million boutique hotel coming to Ybor City started with cafe con leche at La Tropicana Cafe

Behind the deal: $52 million boutique hotel coming to Ybor City started with cafe con leche at La Tropicana Cafe

TAMPA ó Joe Capitano Sr. invested in the 1400 block of E Seventh Avenue in 1985, never doubting the huge potential of the property for Ybor City.But the deal to build a $52 million boutique hotel on the site didnít start to come together until six ye...
Updated: 3 hours ago
Tampa Electric to shut down Big Bend coal unit that killed 5

Tampa Electric to shut down Big Bend coal unit that killed 5

APOLLO BEACH ó Tampa Electric Co. is taking a big step away from coal. The Tampa-based utility is spending $853 million to convert its coal-fired Unit 1 at its Big Bend Power Station to natural gas and retire coal-fired Unit 2 in 2021.Five workers di...
Updated: 3 hours ago
Sprouts Farmers Market to open new store in Riverview

Sprouts Farmers Market to open new store in Riverview

RIVERVIEW ó Sprouts Farmers Market is opening a new location in Riverview, the chain announced Thursday. The new store will be located at Summerfield Crossing Shopping Center, though Sprouts did not have a specific opening date.The announcement comes...
Published: 05/24/18
Hooper: More than a restaurant, Lee Roy Selmonís was a meeting place

Hooper: More than a restaurant, Lee Roy Selmonís was a meeting place

Itís where former Tampa Bay Buccaneers quarterback Doug Williams had lunch with current Bucs quarterback Jameis Winston.Itís where University of South Florida fans often gathered to watch the programís biggest road games.Itís where folks showed up in...
Published: 05/24/18
An Amazon Echo recorded a familyís conversation, then sent it to a random person in their contacts, report says

An Amazon Echo recorded a familyís conversation, then sent it to a random person in their contacts, report says

A family in Portland, Oregon, received a nightmarish phone call two weeks ago."Unplug your Alexa devices right now," a voice on the other line said. "Youíre being hacked."Apparently, one of Amazon.comís Alexa-powered Echo devices in their house had s...
Published: 05/24/18
As home sale prices rise, a lack of homes makes it tough on buyers

As home sale prices rise, a lack of homes makes it tough on buyers

Home sale prices continued to rise both nationally and statewide in April as a prolonged dearth of available homes on the market is making it tough on buyers. A total of 24,804 single-family homes changed hands across Florida last month, up 4.1 perce...
Published: 05/24/18
Brink: A 25-cent hike in the federal gas tax is a rotten idea for Florida

Brink: A 25-cent hike in the federal gas tax is a rotten idea for Florida

No matter your politics, the proposed 25-cent hike in the federal gas tax is a lousy idea.Itís regressive, burdening the poor and working class more than the rich.Federal interference with state transportation projects can raise costs, layer on regul...
Published: 05/24/18
Tutor looks to empower athletes in Wesley Chapel

Tutor looks to empower athletes in Wesley Chapel

Rashay Hudson operates a tutoring business in Wesley Chapel, and NaDorian Hudson has played basketball his entire life, including in college and the ABA. Now, the husband and wife duo are combining their areas of expertise with a new program for kids...
Published: 05/24/18