Will recent developments force a Metro-Leap merger?

MetroPCS and Leap Wireless merger. Sometimes we even get an overly optimistic analyst saying that the chances are very good. Yet, clearly, we’re just running in place. It makes me wonder if even the recent changes in the wireless landscape will be enough to force their hands. Verizon started it by introducing a new line of plans. We focussed on the prepaid end, but they also made a change to their postpaid rates. While many of their plans remained the same, the unlimited talk plan plummeted in price, going from $99.99 to $69.99, $89.99 with unlimited text. These plans still cost well more than comparable ones from Cricket and MetroPCS, but Verizon holds many advantages over the two regional carriers. Over the weekend, AT&T matched Verizon, lowering its unlimited plan rates to match its biggest competitor. Both AT&T and Verizon offer nationwide networks, and while MetroPCS and Leap both have improved their roaming capabilities, they still can’t activate new lines in certain areas of the country. They also don’t have the marketing budget of AT&T and Verizon, nor the handset lineup. All they can offer are cheaper prices and a no-commitment service. Just when it seemed like merger might be the only way for these companies to continue, we learn that Leap is talking to investment banks “to explore strategic options.” This will start — nay, already has started — the speculation of a rumor, or a possible buyout fro another carrier. Reuters lists America Movil (Tracfone), Deutsche Telekom (T-Mobile), and AT&T. Still, we’ve heard these rumors before and have nothing to show for it. All we can do is sit and wait to see if it happens this time around.]]>