MetroPCS "the fastest-growing company in the wireless services space"

Amp’d’s bankruptcy and the poor market for MVNOs. So it’s time for something positive, right? How about MetroPCS taking the wireless world by storm? The company is destroying expectations, and stands now with $15 billion enterprise value. Another smaller wireless company, Leap, is valued at $7 billion. Apparently, some companies can handle rapid growth. Philip Cusak of Bear, Stearns & Co. forecasts that Metro will have a subscriber base “from about 3.4 million to 9.8 million by the end of 2010.” While that’s a pretty broad range, it’s still significant, even if they only hit the floor number. A subscriber base of 3.4 million is nothing to sneeze at. The advantage both companies exploit, according to experts, is the price they pay per new customer. Leap pays about $176, while Metro pays about $117. This is in stark contrast to the major providers, who routinely pay over $300 for each new subscriber. The biggest reason for the dramatic difference: phone subsidization, which is not a burden for the two small companies. There have been talks of a merger, which would make sense. They’re both expanding, though they target different markets. MetroPCS is currently available in Atlanta, Dallas, Detroit, Miami, and San Francisco, targets larger markets (Boston, Los Angeles, Las Vegas, New York, and Philadelphia are in their future plans). Leap works in smaller markets. Together, they could become a major player in wireless communications (though they kind of are already). [Law.com] [MetroPCS Review]]]>