T-Mobile/AT&T merger opens opportunity for MetroPCS

MetroPCS and, to a lesser extent, its rival Cricket. Both regional carriers have grown considerably in the past few years, and have provided some competition to the Big Four. That will now be Big Three, with MetroPCs sliding in as the fourth largest primary carrier in the nation. This will benefit them in many ways. Samia Perkins at Slashgear posits that many T-Mobile customers will flock to MetroPCS once the merger goes through. While AT&T has said that T-Mobile will keep its current pricing structure, that’s a vague enough statement that AT&T can still make significant changes. Given conversations with many current T-Mobile customers, I’m certain that a number of them will flee. MetroPCS provides a non-Verizon, non-Sprint option for them. They could certainly rake in customers. The most important aspect of the article — which cites information from Scott Woolley at Fortune — is how much it costs MetroPCS to serve the average customer. That’s $18.49 per month, compared to a $39.79 ARPU in the fourth quarter. That’s more than double the cost they’re paying for users. If they can keep costs similarly low even with an influx of new customers, they could be ripe for further expansion. All of this places MetroPCS in an interesting spot. They are both responsible for the merger, because of their growth, and the beneficiaries of it. This deal could take a while to finally pass through all the scrutiny, but once it does MetroPCS could find itself in a very favorable position. ]]>

5 Comments

  1. Steve on March 23, 2011 at 2:58 pm

    Now if they would only offer svc in the cincinnati oh area.



  2. Super! on March 23, 2011 at 6:16 pm

    Now let’s roll in those high end phones!



  3. Brandon on March 31, 2011 at 11:03 am

    I am a T-Mobile Customer. If the merger goes through I will not switch to Metro-Pcs. I will switch to Sprint.



  4. fct on April 12, 2011 at 12:49 pm

    I am very unhappy with metro pcs.I bought a second hand phone so i can hook up pay by the minutes plan.It seems that you can only pay with this using a pay by the minute card.Card is imposable to find.I went to 100 metro pcs stores including corporate stores.They didnt even know what i was talking about when i said i wanted to buy pay by the minute phone card.I went to walmarts website and they dont sell this card online only the $10,$40,50 which is usless to me.They advertised that they sell this card at the store.So i looked up my closest store its about 60 miles from me and they didnt even carry the card.What a waste of money buying this phone.T-mobile and at&t boost and verizon you can pick up their cards at any candy store.Metro pcs is ranked # 4 I I cant see how, their customer support is lousy every time you call them a new rep. will give you a different story.Metro pcs in my opinion is a very bad company.I cant see them sticking around in the future.



  5. Daniel on April 13, 2011 at 4:12 pm

    @ftc. I’ve been with MetroPCS for the past two years and they haven’t, in any way, let me down yet. My only complaint about them is their OS, it seems very cheap and very unstable compared to the other carriers.
    I really don’t know where you got the “pay by the minute” plan from, as far as I know there’s no such plan with MetroPCS and maybe that’s why store reps didn’t know what you were talking about. Then again, I don’t know what part of the country you live in, it may be a special service in your area.
    I totally disagree with you in regards to the company being around in the future, I believe that MetroPCS will be around for a very long time if they keep their affordable plans.