Regional wireless carriers Leap Wireless and MetroPCS should get hitched.
These are just a few of the reasons that Bill Ho, wireless analyst at Current Analysis, told Telephony this week that a merger of the two is not only possible, but could be inevitable:
It just makes sense. Think about it: They both have growing subscriber bases thanks to people ditching their wirelines. They have similar business models—low-cost mobile services with no contracts. They serve a similar niche of cost-sensitive subscribers. And their footprints don’t overlap much. They’re like two jigsaw pieces that fit each other perfectly.
Leap and MetroPCS already have a roaming agreement, and swap spectrum in markets where they do overlap (they both use PCS and AWS spectrum—aww!) And, both target urban markets, with Leap targeting Chicago and Phoenix, and MetroPCS going after the Northeast.
If the two do decide to get together they could provide a major thorn in the side of the Big 4: AT&T Inc., Verizon Wireless, Sprint-Nextel Corp. and T-Mobile USA Inc. The national operators are already dropping voice tariffs and competing on flat-rate bundles—competitive pressure that’s sure to ramp up with an additional coast-to-coast “NFL cities” player.
