MetroPCS Communications Inc (PCS) T MOBILE US INC (TMUS) Merger Is a Win-Win

The need to present unquestionable data solutions to users is greater now than ever before. Bigger competitor Verizon Communications Inc. (NYSE:VZ) caught wind of this earlier than its competitors. That’s why it comfortably signed off to huge capital outlays for its 4G LTE rollout. If reports on the rollout are to be believed, Verizon will complete the rollout within the next few months. After completion, Verizon’s 4G rollout will match its current 3G footprint in the country. Indeed, the 4G rollout, despite not reaching completion, has already worked wonders for Verizon Communications Inc. (NYSE:VZ)’s stock. A lot of investors have put in their money with the belief that 4G is the future and that it will consolidate a formidable subscriber base.

AT&T Inc. (NYSE:T) is several steps behind Verizon as far as 4G LTE rollout is concerned. Nonetheless, it’s not taking the backseat. It has already announced new target markets for summer, signaling a very busy summer. Markets that will have their 4G service turned on include Jackson in Madison County, Napa, and the cities of Humboldt and Brownsville among others. It will also expand its 4G coverage in cities such as New Haven, parts of Beacon Falls, and Connecticut among others.

that mobile data traffic increased 70% in 2012. It further projects a 66% compound annual growth rate (CAGR) from 2012 through to 2017. In it all, it argues that smartphones have been a key pillar in this astronomical growth. T MOBILE US INC (NYSE:TMUS) and MetroPCS Communications Inc (NYSE:PCS)’s plans to offer new devices, increase subscriber base and offer better data services are therefore in line with the expected growth of data and smartphones.

I believe that this merger will place both companies in a better position to compete with bigger carriers like Verizon and AT&T Inc. (NYSE:T). Both MetroPCS and T-Mobile are good buys.

The article MetroPCS T-Mobile Merger Is a Win-Win originally appeared on Fool.com and is written by Lennox Yieke.

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