Sprint might make counter offer to edge out T-mobile on MetroPCS Merger

Well this is certainly an interesting twist. Just yesterday we got word from T-Mobile USA CEO John Legere announced that Deutsche Telecom and MetroPCS reached an agreement to merge. He talks about how ti will be good for all parties involved, the number of new customers and yearly profits that it will bring. Things looked good with the exception of getting the approval of the regulator, which shouldn’t be an issue.

Now there is apparently a new wrench that was thrown into the mix though. Businessweek is reported that Sprint might be making a counter offer to MetroPCS in an attempt to edge out T-Mobile. According to a few sources close to the company, they are in the process of bouncing some numbers around to see if it would be possible to make a better offer than T-Mobile has.

“It would make sense for Sprint to look at MetroPCS,” said Tom Burnett, director of research at Wall Street Access, an investment firm in New York. “The networks are compatible and that might make it easier.”

By compatible, he means that both Sprint and MetroPCS are CDMA based. Unlike T-Mobile and AT&T who are GSM, or use SIM cards, to make it simpler. We know the merger between MetroPCS and T-Mobile would give them a larger customer base and help position T-Mobile to compete in the market better with the big boys. After the, expected, fail of the AT&T merger and the loss of numerous customers and JD Powers ranking slipping, T-Mobile needs to refocus on a few things. If Sprint does go forward and steal MetroPCS out from under T-Mobile it could mean some trouble for the Magenta company. Not that they would close their doors and go belly up, but it would hurt them in the long run.

Where do you guys stand on the subject? Would you rather see T-Mobile or Sprint pick up MetroPCS. Would edging out T-Mobiles offer have a detrimental effect on current T-Mobile customers?

Source: Businessweek via 9to5Google