MetroPCS Communications, Inc. (PCS)

[bowonwing]

Re: rumor DT buy-out of PCS. Currently PCS is CDMA technology and DT (T-Mobile) is GSM. These technologies are not compatible, the phones on one will not work on the others network. So, as the cards are laid out on the table right now, it does not make sense for DT to buy PCS.

However, PCS has already announced that in late 2010 it will launch G4-LTE technology, which will supersede CDMA. It has been said the T-Mobile is also going to with G4-LTE in the future, but to my knowledge nothing official has been announced by DT. If this is true, then this is the only way DT buys PCS and gets value out of it. JMHO

Some have projected a buy-out at $14.00, or $5B, which someone posted was about $14.20 a share for PCS. If there is a buy-out, I think $14.40 is too low. PCS spent $1.4B in Auction 66 in 2006 winning eight licenses.

Wireless providers are current under tremendous pricing pressure. Some are speculating that S is in trouble. Something will have to give in the current wireless market.

The key to remember is that these companies are cash cows (after the network expenses have ramped down). Also, in the future, the company gets paid with inflated dollars.

IMO, buy-out should be around $16.80 to $18 a share, or about $6B up. But then again, PCS is worth only what someone will pay for it.