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PCS Message Board

  • teamrep teamrep Apr 1, 2013 3:04 PM Flag

    metroPCS is at a crossroads that makes the T-Mobile deal a fair deal imo

    metroPCS has been on a strong run over several quarters due to strong management focus and execution. However, the company faces basic hurdles of scale, access to spectrum, and looming competition being prepared by larger, better financially and spectrum positioned rivals. That makes the consideration of what PCS and its investors should do one where the past success can inflate future expectations. It boils down to PCS being pressed to become larger through acquisition. Since there is no feasible way for metroPCS to acquire their way into the future scale needed, the most likely best way forward is to be acquired imo. And since no other operator has the same synergies or made an offer, T-Mobile, warts and all, looks like the best way forward.

    What is clear is that T-Mobile has liabilities including large debt, past losses in subscribers and lackluster marketing and customer satisfaction rating. However, that is why metroPCS is a good match.. they can most likely improve the combined operations and marketing image and effectiveness.

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    • T-Mobile is a mess. PCS can stand alone and run a profitable business. Suitors will come around for PCS. This merger offer has done nothing to raise the PCS share price. I am voting against it.

      Sentiment: Buy

    • What do you mean no other operator has the same synergies. T-mobile and PCS are different networks. They plan on shutting down PCS over time and put new users on T-mobiles network. Sprint would have much more synergies. I'd like to know the rationale behind your thinking. Thank you.

      Sentiment: Strong Buy

 
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