MetroPCS, Leap On Verge of New Merger Talks?

Nearly two years after withdrawing its bid for rival Leap Wireless (LEAP), is MetroPCS Communications (PCS) on the verge of another takeover attempt?

Yes, say some analysts. They’re speculating, once again, that MetroPCS will indeed aim for Leap. Why? Because both companies, once at the top of the heap in terms of telecom stock performance, are losing money and customers – more of each than Wall Street has expected. MetroPCS and Leap are falling behind as competitors launch $45 and $50 monthly unlimited plans, for example. They’re also lagging as deeper-pocketed rivals spend more on their networks, a key consideration as data services challenge bandwidth capacity.

“A deal would make sense now more than ever if for no other reason than expense control,” Chandan Sarka, an analyst for Auriga USA, wrote in a recent report.

A combined MetroPCS and Leap, Sarka added, would have to build just one upgraded network as the march toward 4G continues.

Share this article: Email, Slashdot, Digg, Del.icio.us, Yahoo!MyWeb, Windows Live Favorites, Furl
Add this article feed to: RSS, My Yahoo, Newsgator, Bloglines