T-Mobile USA will merge with prepaid wireless carrier MetroPCS under a complex cash-and-stock deal the companies approved today, in which T-Mobile parent Deutsche Telekom will retain a 74% stake in the new entity. In a statement, Deutsche Telekom chief executive Rene Obermann termed the combination "a great strategic fit." T-Mobile will remain the nation's fourth-largest wireless carrier, with 42.5 million customers, but will have greater resources to complete its upgrade to 4G technology. The carriers' spectrum holdings are complementary, and MetroPCS has completed much of its build-out to Long-Term Evolution technology.
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