/// MetroPCS is Off the Table. What Now, Sprint?
With its acquisition of MetroPCS , T-Mobile and its parent, Deutsche Telekom, have taken out one tough rival and put the competitive screws to another: Sprint. Earlier this year, Sprint was poised to acquire MetroPCS when the company’s board of directors balked at the deal at the last minute. Though fully negotiated, the board opted to walk away , rather than sign it. So Sprint forfeited its chance to claim MetroPCS’s spectrum and 9.3 million customers. Why? That’s not entirely clear. Sprint’s stock was off and had been for years. There may have been concerns about execution and, more broadly, the company’s overall strategy. Regardless of the reason, the end result was the same: Sprint lost out on an a compelling opportunity. Had it snapped up MetroPCS, not only would it have gained that spectrum and the millions of customers I mentioned earlier, it would have significantly raised its profile in the wireless sector. Remember, MetroPCS customers were already roaming onto Sprint’s network, because it too uses the CDMA standard. Integration would have been relatively easy. Presumably, that’s why Sprint spend months negotiating to acquire MetroPCS. So now that MetroPCS is off the table, what’s Sprint’s next move? There are two potential tacks here. The first, as Forrester analyst Charles Golvin explains it, is simply to stay its current course
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MetroPCS is Off the Table. What Now, Sprint?