T-Mobile Buying MetroPCS? Don't Count On It
NEW YORK (TheStreet) -- Wednesday was a good day to own MetroPCS (PCS) and Leap Wireless (LEAP) as the postpaid cellphone carriers jumped higher on over three times the average volume for both companies. MetroPCS popped over 20% to a high of $8.45 Wednesday when Bloomberg reported Deutsche Telekom (DT) , the parent company of T-Mobile USA, and MetroPCS are in possible merger talks.
MetroPCS is headquartered in Texas and currently has 9.3 million customers located primarily in 13 metropolitan areas. Leap Wireless followed higher as well, on speculation that it may also become in play soon.
T-Mobile is the largest postpaid carrier not offering the Apple (AAPL) iPhone after Sprint (S) added Apple products last year. T-Mobile's lack of iPhone sales is cited as one of the larger contributing causes of subscriber migration to other carriers. Last year, T-Mobile experienced a brutal subscriber decline of over 6%.
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