/// Two Networks, One Company: T-Mobile Explains Why Its MetroPCS Deal Can Work
When T-Mobile announced its deal this week to acquire MetroPCS , one of the first concerns raised by outsiders was the fact that today the two companies use a different type of network technology. T-Mobile’s network has evolved from the type of system used by AT&T while MetroPCS has historically relied on a CDMA network similar to those used by Verizon and Sprint. That has some analysts and investors worried that the combined company could face the kind of hurdles that Sprint saw in the wake of its Nextel deal–a combination that, years later, still forces the company to operate two incompatible networks. But T-Mobile CTO Neville Ray says the key is that both companies have been moving toward a similar next-generation LTE network. Indeed, Ray says the combined spectrum will allow the company to offer a much stronger network in key cities than it ever could have done solo. The key, he said, is that T-Mobile plans to quickly migrate MetroPCS customers to phones that use T-Mobile’s network. “This isn’t about integrating these two networks,” he said in an interview Friday. “It’s about moving MetroPCS over to a bigger and stronger converged network.” With Nextel, Sprint acquired a set of customers dependent on features that it couldn’t match on its own network. But Ray says there is no feature MetroPCS customers are used to that T-Mobile can’t immediately match on its own network.
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Two Networks, One Company: T-Mobile Explains Why Its MetroPCS Deal Can Work