MetroPCS to eventually collide with Leap Wireless

MetroPCS, a low-price point wireless service provider, revealed plans to expand is geographical coverage around the country. While this is without question good news for MetroPCS, with new situations also come new problems. The potential expansion of MetroPCS will result in them eventually overlapping areas with a similar wireless service provider, Leap Wireless. With both providers looking to expand, they are also beginning to realize the difficulties of competing with big-time providers like AT&T or Verizon. Leaving 2 small, directly competing providers in the same areas where the major providers also have a major presence will most likely not turn out well for either MetroPCS or Leap. Instead, they have started talks about a possible merge or acquisition. Through analysis of both companies, MetroPCS would most likely be the acquirer here. However, looking at the recent history of these 2 companies, a hostile takeover, if anything at all, is more likely to happen. There has been history of conflict between the 2 companies, each having sued each other once in the past.