So how is this all going to work? According to industry analysts, Metro PCS will be giving 1. 5 billion to its shareholders and performing a 1-for-2 reverse split of its stock. This allows any outstanding shares to be halved and doubled in value. Meanwhile, all of T-Mobile USA’s assets will be bought out by German telecommunications company Deutche Telekom. Inherently giving D. T. control of the combined companies by providing financial support through credit and debt offerings. This complex migration will be expensive, risky, and seamless.
Customers of T-Mobile and Metro PCS have incompatible networks. Meaning, no two phones from either company can operate on one single network. This infrastructure obstacle could hamper a successful outcome and leave investors, and executives blowing in the wind. Back in 2005, Sprint and Nextel merged under similar circumstances and ultimately failed. It was considered one of the worst corporate business mergers in U. S. History. T-Mobile intends to combat this dilemma by implementing 4G-LTE networks that will work across both platforms.
The transition will be a gradual multi-year process which should culminate in 2015. Corporate merging usually allows a company to get ahead of the competition. By allowing resources to be efficiently allocated, a merger catapults a company to higher levels. Nonetheless, the current deal with T-Mobile will barely affect its ranking on the industry charts. Leaving it smaller in both sales and subscribers. Being a shareholder with T-Mobile, in today’s economy, has its uncertainties but when it comes to business, nothing ventured nothing gained.
... British business tycoon Sir Richard Branson. Virgin Mobile was the first Mobile Virtual Network Operator which launched in United Kingdom ... Bidding took place among 13 companies. Government promoted innovation and use of technology. Mobile phones were playing a big ... customers and later venture into Post-Pay domain. The company strongly believed that greater employee satisfaction would result ...