Bellevue-based T-Mobile USA announced a merger Wednesday morning with MetroPCS, a Dallas-based cellular carrier.
The combined carriers, which will have 42.5 million subscribers, will retain the T-Mobile name, and be based in Bellevue. The CEO of the combined companies will be recently named T-Mobile CEO John Legere.
Check out more T-Mobile news on Bellevue Patch.
According to T-Mobile, which is a subsidiary of German company Deutsche Telekom, the transaction is expected to close in the first half of 2013, pending MetroPCS shareholder approval, regulatory approvals and other customary closing conditions.
According to CNN, the merger faces technical challenges, because of the carrier's incompatible wireless technologies. And both brands combined still wouldn't surpass AT&T, Verizon and Sprint in subscribers, and, unlike the three largest cellular companies, neither T-Mobile nor MetroPCS has the popular iPhone (though T-Mobile's network is compatible with iPhone and is wooing owners to switch to its network).
However, Businessweek reported that, unlike T-Mobile and AT&T's failed attempts to merge last year, federal regulators likely will approve the T-Mobile and MetroPCS move.
Last year, AT&T and T-Mobile USA's parent company Deutsche Telekom . However, after challenges by the U.S. Department of Justice and several state attorneys general, AT&T abandoned the bid late last year.
After the merger attempt broke down, T-Mobile announced heavy investments into its wireless network. The company earlier announced a $4 billion investment which would see the network capable of carrying Apple's iPhone.
T-Mobile celebrated its 10th Anniversary this year.