The T-Mobile MetroPCS merger has been a relatively quick affair. Since there was never any real chance of it upsetting the regulatory bodies, they only possible stumbling block was the chance that some of Metro’s most influential shareholders would try to upset the apple cart.
Bloomberg reports today that the MetroPCS shareholders have agreed to the terms and are happy for the merger with T-Mobile US to go ahead. The transition from resistance to acceptance was helped largely by Deutsche Telekom improving the financial terms.
As noted by Bloomberg:
The improved terms, which cut the shareholder loan to $11.2 billion from $15 billion and trim the interest rate by half a percentage point, won the endorsement of MetroPCS’s largest investor, Paulson & Co., as well two shareholder-advisory firms in the run-up to the vote.
What this will do for the end user is help ensure that Verizon and AT&T are being offered some genuine competition for network speeds and coverage. Merging with Metro has meant that T-Mobile has added 9 million prepaid customers and freed up some spectrum which should enable the magenta carrier to boost its infrastructure.
Do you think Tmo will catch up with the two big boys? Or will it always be the number 4 carrier?