Deutsche Telekom was in “full-throated” talks with MetroPCS, we were a bit skeptical. After all, T-Mobile USA and MetroPCS operate different types of networks: GSM for T-Mo and CDMA for Metro. As we saw with the Sprint (CDMA) and Nextel (iDEN) merger, combining network types might not be the best move. In the article I noted that there is always room for overstatement, and that appears to be the case. Rather than acquiring the regional telecom, T-Mobile just wants to use its 4G spectrum, which Metro hopes to roll out in 2010. As the Bloomberg article says, T-Mo is “looking for the most cost-effective way to build nationwide networks using high-speed technology.” To further help the process, T-Mobile is talking to Sprint about possibilities. The latter has a 51 percent stake in WiMax carrier Clearwire.
“This would be an answer that would be good news for everyone,” said Craig Moffett, an analyst at Sanford C. Bernstein & Co. in New York, who doesn’t own shares in any of the companies. “It helps check the box for T-Mobile, which is desperately seeking a 4G answer.”It probably would make sense for T-Mobile. They don’t have to get into any protracted negotiations over ownership, and can still provide their customers with faster speeds. Not that the prepaid end will see any of this. Most importantly, it underscores the abundance of rumors on the Internet. Just two days ago we were talking about T-Mobile acquiring Metro. It turns out those “full-thoated” talks were just about a rental.]]>