Northern,WI  10/11/12  (BasicsMedia)  —  Sprint Up MetroPCS Down: Telecom Wars Shaking Lanscape as Japanese mobile carrier Softbank Corp. is in advanced talks to buy U.S. wireless carrier Sprint Nextel Corp. in a deal expected to be $13 billion, in value, a person with knowledge of the negotiations said Thursday.

Such a deal would be the second major acquisition for the U.S. telecommunications industry this month. Deutsche Telekom AG last week agreed to merge its T-Mobile USA unit with MetroPCS Communications Inc. in a deal that would combine the country’s fourth and fifth largest wireless carriers.

 

Shares of Sprint (S) are up 11% today and 100% in 2012 as Telecom consolidates and winners and losers emerge.  The other end of the spectrum has MetroPCS (PCS) trading a bit lower today -11% but up slightly for the year.  As they say “rising tides lifts all boats” and if you loook at the recent price actions in the charts you will find that (PCS) traded as low as $5 p/s in July of 21012 and rallied as high as $14 p/s during this consolidation cycle.  Telecom is famous for company volatility and mis-pricing as platforms are aquired to access the US Consumer.

Tough to trade these stocks as arbitrageurs, hedge funds and speculators are picking their spots as the guessing game about who will buy who sort themselves out.  It always ends similar to musical chairs and someone is left standing who does not want to be..

MetroPCS Communications, Inc., a wireless telecommunications carrier, together with its subsidiaries, provides wireless broadband mobile services in the United States. Its services comprise voice services, such as local, domestic long distance, and international call services; and data services, including domestic and international text messaging, multimedia messaging, mobile Internet access, mobile instant messaging, location based services, social networking services, push e-mail, and multimedia streaming and downloads, as well as services provided through the binary runtime environment for wireless, Blackberry, Windows, and the Android platforms comprising ringtones, ring back tones, games, content, and applications. They are based in Richardson, Texas.

Sprint Nextel Corporation, together with its subsidiaries, offers wireless and wireline communications products and services to individual consumers, businesses, government subscribers, and resellers in the United States, Puerto Rico, and the United States Virgin Islands. It operates in two segments, Wireless and Wireline. The Wireless segment provides data transmission services.

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