In 2013, T-Mobile (NASDAQ: TMUS) closed its merger with MetroPCS, one of the largest U.S. prepaid carriers. In hindsight, the deal emerged a significant success for T-Mobile as it realized larger than expected cost synergies while solidifying its foothold in the prepaid market. T-Mobile’s stock is up roughly 3x since the deal closed in May 2013, compared to rivals Verizon up less than 20% and ATT which is almost flat in the same period. T-Mobile’s adjusted margins have also increased by almost 10% over the last 6 years. While the stock price appreciation and improvement in margins are partly due to T-Mobile’s “Un-carrier” strategy of ending contracts on its postpaid plans, it’s safe to say that its success in the prepaid space has also played a role.
View our interactive dashboard analysis on Why T-Mobile’s 2013 Acquisition Of Metro PCS Was A Success
T-Mobile Steadily Scaled-Up Its Prepaid Subscriber Base Post The Deal
The Deal Has Helped Improve T-Mobile’s Prepaid ARPUs
Continue reading T-Mobile’s Solid Execution On MetroPCS Acquisition Bodes Well For Sprint Deal on Forbes
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