MetroPCS Communications, Inc. (PCS)

[bowonwing]

Posted by xgrk88a on Yahoo PCS mb:
"I believe the T-mobile / PCS buyout is real and likely to happen...

To start with, T-mobile and PCS are building on the same band. About 50% of PCS is on the 1900 mhz band...
http://forum.xda-developers.com/archive/...

and this shows that t-mobile is building their 1900 mhz...
http://www.technobuffalo.com/companies/a...

The reason that t-mobile is building out its 1900 mhz is because it needs it for its iPhone launch. With the purchase of MetroPCS, it will give T-mobile more 1900mhz spectrum. Who knows, T-mobile could ditch the low end customers at PCS and convert 100% of the 1900mhz to spectrum for the iphone (and increase ARPU greatly).

Additionally, Here are the value per user based on the major carriers:
PCS
7.8 billion market cap
9.3 million subs
$301 value per sub

VZ
$114.760 billion market cap
$95.825 value of wireless market cap
93 million subs
$1030 value per sub

T
$193.130 billion market cap
$121.672 billion value of wireless
92.8 million subs
$1311 value per sub

T-mobile
$48.720 billion market cap
$12,180 billion associated with t-mobile
33 million subs
$370 value per sub

I realize there are just rough numbers I have compiled based on a quick google search, but they should be close.

A merger of the two could create a close 3rd place player. Sprint could be purchased next in the roll up (with a value of only $131 per sub since they're losing money). A valuation of $700 per sub should be fairly quickly realizable by T-mobile after DTEGY floats a tracking stock. That would be a double of the valuation for T-mobile based on current prices of PCS. I would expect a buyout price of at least $12 based on my metrics.

This would be a smart move for T-mobile. Expect it to happen."