Technology Collaborations, Partnering, and Alliances

Technology Collaborations, Partnering, and Alliances

Introduction

Mergers and acquisition is characteristic of corporate finance, management and overall corporate strategy which deals in the purchasing, selling, separating or combining of different firms usually smaller in size which might help the larger firms to grow in higher pace in its industry, location or sector. Apart from its own origin, the smaller firm can also help the larger firm to grow in some new technology or at some new location. The merger and acquisition are two distinct things. Merger means the two firms come together to work in a combine manner with two managements working simultaneously, whereas, acquisition is when one firm, usually larger firm, purchases the smaller firm and that smaller firm wraps up completely.

Discussion

Merger of T-Mobile and MetroPCS

The recent merger that took place in USA is between T-Mobile and Metro PCS. This merger took place in the year 2012. T-Mobile USA is secondary company of a telecom company which itself is German based company. T-mobile is one of the leading providers of wireless voice and information communications services in America.

Currently the company is serving to a market of about 33 million customers which includes prepaid, customers, contract customers, and these customers use the network of T-Mobile domestically as well as internationally. The services of the firm also entails in them the wireless internet service access and other information services on retail stores, airports, cafes and on many other locations through its brand of HotSpot. T-mobile is also engaged in the business of reselling the cell phones plus the PDAs and other phone related accessories and stuff from companies such as Sony Ericson, Samsung and Nokia (T-mobile.com, 2013).

MetroPCS was established in 1994 by the former executives of the wireless company named PageMart wireless. The firm was launched as a general wireless company. After its success in this field in 2009, the firm launched its 3G network. Later in 2010 the firm launched its new service named LTE network. The firm was a rival for T-Mobile and was also one of the leading providers of wireless networks. It was in 2012 when MetroPCS became the first carrier around the globe to air Voice over LTE service. Apart from these services the firm offers cell phones, and its related plans and services plus text, data, and voice services. The firm is also engaged in long distance internet providing business. The company serves both business and individual customers. The former name of the firm was GWI PCS which was later, changed to MetroPCS in the year 1999 (MetroPCS.com, 2013).Recently in the year 2012 the T-Mobile decided to acquire its competitor namely MetroPCS.

Implications of Merger

Last year in October 2012, MetroPCS ended up with an agreement to merge the firm with its rival in the industry named T-mobile. The agreement mentioned that the merger would be dependent on approval from the regulatory bodies and the share holders of the firm. Another point in the agreement was that the MetroPCS shareholders will be holding of ...