T-Mobile, Bloomberg reported, is in talks about merging with MetroPCS. While the need for new spectrum with which to build out LTE networks is a frequent motivator—such as it was during AT&T’s 2011 bid to purchase T-Mobile—the report statedthatT-Mobile, Bloomberg reported, is in talks about merging with MetroPCS. While the need for new spectrum with which to build out LTE networks is a frequent motivator—such as it was during AT&T’s 2011 bid to purchase T-Mobile—the report statedthat the combination of the nation’s fourth- and fifth-largest carriers was more about bolstering T-Mobile’s ability to grow.

T-Mobile’s postpaid struggles left the operator focusing on prepaid for the majority of future growth and competing more with MetroPCS, Leap Wireless and Tracfone,” Technology Business Research analyst Eric Costa wrote in May 10 research note. “This could lead to a potential alliance or merger between some of these players, including rumors that T-Mobile’s parent company, Deutsche Telekom, and MetroPCS are in talks about a possible sale of T-Mobile USA or a merger where DT will be in control of the new combined entity.” the combination of the nation’s fourth- and fifth-largest carriers was more about bolstering T-Mobile’s ability to grow.