T-Mobile USA (4th player) and MetroPCS (5th player) considering a merger to become stronger competitors of Verizon, AT&T and Sprint in the US. T-Mobile would have a slightly extended reach nationwide with a new arm of no-contract mobile customers with the potential of also reaching smaller markets.
Local commentators think it is just a temporary band-aid for two flailing nationwide carriers. T-Mobile USA is not for a sale as it was in March 2011, which last year triggered speculation that DT might buy out some of its subsidiaries like MTEL. Therefore, there should be no impact on MTEL this time, in our view.