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Major US network operators merge: MetroPCS to join T-Mobile USA

There’s major consolidation in the US mobile industry today with news that Deutsche Telekom’s T-Mobile USA - the nation’s fourth-largest mobile operator - is planning to merge with MetroPCS. A proposed merger between AT&T and T-Mobile last year was unsuccessful.

The combined company, which will retain the T-Mobile name, is expected to have approximately 42.5 million subscribers. However, it will still have fewer customers than any of the top three: Verizon Wireless, AT&T and Sprint Nextel.

René Obermann, Chief Executive Officer of Deutsche Telekom, said “We are extremely pleased to announce this transaction with MetroPCS, which enhances Deutsche Telekom’s position in the expanding U.S. wireless market. The T-Mobile and MetroPCS brands are a great strategic fit - both operationally and culturally. The new company will be the value leader in wireless with the scale, spectrum and financial and other resources to expand its geographic coverage, broaden choice among all types of customers and continue to innovate, especially around the next-generation LTE network. 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.”

John Legere, currently President and Chief Executive Officer of T-Mobile, will become President and CEO of the new company. J Braxton Carter, currently Chief Financial Officer and Vice Chairman of MetroPCS, will be the CFO. The deal is subject to shareholder approval and regulatory agreement.

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