MetroPCS & Wireless Network Phones : Threat to AT&T,Sprint and Verizon

The company is called MetroPCS and it offers no contracts and cheap phone plans.

Consumer Reports said this potential merger offers promises and threats for consumers.

It positions T-Mobile as a strong competitor to AT&T, Verizon and Sprint. T-Mobile customers could get better service in cities where MetroPCS is available because both carriers have high speed 4G data networks that are highly compatible. On the downside Metro PCS customers could see their low rates go up," Consumer Reports Electronics Editor Paul Reynolds said.

While Metro PCS service is cheap, Consumer Reports predicts T-Mobile's pricing structure would be adopted.

T-Mobile is calling this agreement signed with MetroPCS a push toward offering a value carrier for consumers. The combined company would carry the T-Mobile name.

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