Deutsche Telekom is reported to have renewed discussions with the USA based regional network, MetroPCS regarding a possible merger with its own T-Mobile USA network. The two companies were last reported to be in talks back in late 2009.
Citing two unnamed people familiar with the talks, Deutsche Telekom has been considering a stock-swap transaction and then the listing of the enlarged company on the US stock exchange.
One stumbling block could be that MetroPCS is a CDMA based operator, although it is deploying an LTE overlay which would fit better with T-Mobile’s network.
Other options being considered include an outright sale of T-Mobile USA or a stand-alone stock market floatation. Deutsche Telekom is reported to be in talks with other companies as well.
The talks come after regulators blocked the planned merger of AT&T with T-Mobile USA, although that then lead to AT&T handing over a chunk of its radio spectrum in compensation as well as a hefty fee to Deutsche Telekom