T-Mobile and MetroPCS Team Up

T-Mobile and MetroPCS joined forces Wednesday in a deal that will merge their companies and make them more competitive against rival cellphone carriers.

The combined company will keep the T-Mobile name and offer a larger combined 4G LTE network to its 42.5 million subscribers.

Through the merger, T-Mobile will continue to hold its No. four spot against competing cellphone carriers, but will gain wider access to airwave space.

Deutsche Telekom, T-Mobile USA's German parent, will hold a 74 percent stake in the new company. MetroPCS shareholders will own the remainder of the company and will also receive a payment of $1.5 billion.

"We are committed to creating a sustainable and financially viable national challenger in the U.S., and we believe this combination helps us deliver on that commitment," Deutsche Telekom CEO Rene Cobermann said in a statement.

Some experts believe the deal won't make monumental differences for cellphone users, but predict that MetroPCS subscribers will need to purchase new phones within the next three years as they switch to T-Mobiles service.

The deal still has to be approved by both company's shareholders and will need to receive government approval before moving forward.