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MetroPCS and Leap Wireless Shares Dip After Softbank/SprintNextel Deal Announced


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October 17, 2012 08:20 ET

MetroPCS and Leap Wireless Shares Dip After Softbank/SprintNextel Deal Announced

Five Star Equities Provides Stock Research on MetroPCS and Leap Wireless

NEW YORK, NY--(Marketwire - Oct 17, 2012) - Japan's third-largest mobile carrier Softbank Corp. on Monday agreed to purchase a 70 percent stake in SprintNextel Corp. for approximately $20 billion. The deal will provide Sprint with a much needed influx of cash and enable them to become a major competitor to industry leaders AT&T and Verizon. Five Star Equities examines the outlook for companies in the Domestic Telecom Industry and provides equity research on MetroPCS Communications Inc. (NYSE: [ PCS ]) and Leap Wireless International, Inc. (NASDAQ: [ LEAP ]).

Access to the full company reports can be found at:

[ www.FiveStarEquities.com/PCS ]

[ www.FiveStarEquities.com/LEAP ]

Once the purchase is complete, by mid-2013, Softbank will become one of the world's largest telecom groups with roughly 90 million subscribers. The merger was the second announced this month as Deutsche Telekom AG owned T-mobile USA agreed to merge with MetroPCS. Analysts have speculated that Clearwire Corp. may be next in line.

"This is pro-competitive and pro-consumer in the U.S. because it creates a stronger No. 3... it competes with the duopoly of AT&T and Verizon. When you look at what Softbank has accomplished in Japan with the No. 3 carrier, it's something we can learn from," said Sprint Chief Executive Dan Hesse.

Five Star Equities releases regular market updates on the Domestic Telecom Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at [ www.FiveStarEquities.com ] and get exclusive access to our numerous stock reports and industry newsletters.

MetroPCS provides a variety of wireless broadband mobile communications services to its customers on a no long-term contract, paid-in-advance basis. As of December 31, 2011, it had over 9.3 million customers. The company earlier this month agreed to merge with Deutsche Telekom's T-mobile USA for $1.5 billion. Combined the two companies would have a total of 42.5 million customers.

Leap's Cricket service offerings provide customers with unlimited wireless services for a flat rate without requiring a fixed-term contract or a credit check. Shares of the company fell nearly 20 percent after the T-Mobile USA/MetroPCS merger was announced. Analysts previously speculated that MetroPCS would consider purchasing Leap as it was also a major player in the prepaid market.

Five Star Equities provides Market Research focused on equities hat offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. Five Star Equities has not been compensated by any of the above-mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: [ www.FiveStarEquities.com/disclaimer ]



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