MetroPCS argues against AT&T/T-Mobile deal, but offers conditions

MetroPCS made official its opposition to AT&T's proposed $39 billion purchase of T-Mobile USA, joining the likes of Leap Wireless, Cellular South and Sprint Nextel in calling on regulators to squelch the transaction. MetroPCS, the nation's fifth largest wireless carrier with close to 9 million subscribers, had not previously taken a stance on the deal.

However, in its filing with the Federal Communications Commission, MetroPCS attempted to play both sides of the topic, offering suggestions on conditions the agency should place on AT&T if it does approve the transaction. Specifically, MetroPCS urged the FCC to require AT&T to divest unused spectrum, provide roaming services to competitors and quit selling exclusive handsets. MetroPCS' stance is noteworthy considering that other players, including Sprint, have said the deal should not be approved under any conditions.

Among Metro's more prominent arguments:

• AT&T's 'spectrum crunch' is a problem entirely of its own making, caused by years of bad decisions and clinging to inefficient technologies.
• The fact that MetroPCS already is achieving two times more efficiency than AT&T--with considerably less spectrum--demonstrates that AT&T could double the utilization of its existing spectrum in many markets merely through investments in technology and infrastructure.
• MetroPCS was the first to deploy 4G LTE -- substantially ahead of AT&T which is only now planning to deploy 4G LTE. AT&T claims spectrum constraints have slowed it down, yet MetroPCS faces much worse constraints, yet has innovated in this area faster than AT&T.