T-Mobile USA merger talks

GERMAN mobile network giant Deutsche Telekom is in talks with US operator MetroPCS about merging with its T-Mobile USA unit, in a deal that would see the combined company compete with larger rivals.

Deutsche Telekom, which joined up with France Telecom in the UK in 2010 to form Orange and T-Mobile parent company EE, said talks had opened on a deal that would see T-Mobile USA have around 43m customers in total.

The deal, known as a reverse initial public offering, would see private company T-Mobile USA gaining a public listing by acquiring MetroPCS, said sources close to the negotiations.