T-Mobile, MetroPCS Merger: Changes and What This Means to Customers

Wednesday, T-Mobile struck a deal to merge with MetroPCS, a prepaid regional carrier.

"We are extremely pleased to announce this transaction with MetroPCS, which enhances Deutsche Telekom's position in the expanding U.S. wireless market," said René Obermann, chief executive officer of Deutsche Telekom in a press release. "The T-Mobile and MetroPCS brands are a great strategic fit - both operationally and culturally."

Obermann said the new company will now be able to expand its geographic coverage, broaden choice among all types of customers and "continue to innovate."

"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," Obermann said.

MetroPCS shareholders will receive $1.5 billion in cash and a 26 percent stake in the combined company, which will create carry 42.5 million subscribers, according to Cnet.

"This transaction will create the leading value carrier in the U.S. wireless marketplace, which will deliver an enhanced customer experience through a wider selection of affordable products and services, deeper network coverage and a clear-cut technology path to one common LTE network," The press release reads. "The combined company, which will retain the T-Mobile name, will have the expanded scale, spectrum and financial resources to aggressively compete with the other national U.S. wireless carriers."

Cnet said the company hopes to be able to better compete against AT&T and Verizon Wireless.

The Washington Post said customers need to be aware of certain changes. The Post said customers won't have to purchase new cellphones.

"The new company will keep both networks running until the end of 2015, when the MetroPCS network will be shut down. But when MetroPCS customers do buy a new phone, they will be moved over to T-Mobile's network," the article said.

The expanded network is said MetroPCS customers will have access to more wireless coverage, especially in major metropolitan areas.

As far as prices, it's not clear whether prices will change, but the article did state that new company will still offer no-contract monthly, SIM-only, pay-as-you-go and mobile broadband plans.

The merger is expected to be complete in early 2013.