Can the New T-Mobile USA Make a Big Splash?

It’s finally happened. MetroPCS (NYSE:PCS) and Deutsche Telekom’s T-Mobile USA (NYSE:TMUS) have merged, giving birth to the “TMUS” ticker on the New York Stock Exchange.

The deal took a long time to finally go through. T-Mobile had been working for a while to find a merger of some sort, having tried to form a partnership with AT&T (NYSE:T) in the past but getting stopped by regulators. It also took some effort on the part of Deutsche Telekom to get MetroPCS to agree to the deal.

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To get the deal through, Deutsche Telekom had to reduce a shareholder loan to MetroPCS from $15 billion to $11.2 billion, while also dropping the interest rate by half of a percentage point. The large German carrier also had to make a $1.5 billion cash payment to MetroPCS investors, coming out to $4.06 a share. In return, Deutsche Telekom received a 74 percent stake in the combined company, while MetroPCS shareholders took the remaining stake.

The merger is big news for T-Mobile USA, as it will gave the company a large boost to its customer base as well as a increase in available spectrum. As it’s important for a network to have wide coverage and also the fastest networks speeds, the extra airwave licenses could help T-Mobile build a network that can better compete with the top 3 carriers in the U.S. — Verizon (NYSE:VZ), AT&T, and Sprint-Nextel (NYSE:S).

A number of factors could be adding up in T-Mobile’s favor to give it some nice activity. The company recently started offering Apple’s (NASDAQ:AAPL) iPhone 5 on its network, it switched to offer monthly plans rather than 2-year contracts, and now it has merged with MetroPCS for more customers and spectrum licenses.

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The new merged company will run under the T-Mobile USA name, and be listed under the “TMUS” ticker. The new ticker appeared on the New York Stock Exchange Wednesday morning, opening at $16.25 per share, with a trading range of $16.24-$16.99 before noon that day.

With T-Mobile now finally standing on its own two feet in the U.S., it is time to see how its stock will fare and whether the merger with MetroPCS will lend a strong helping hand to the company.

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