The T-Mobile USA, a subsidiary of Germany’s Deutsche Telekom announced recently that it will acquire no-contract and low-rate, pre-paid plan cellphone provider MetroPCS Communications for cash and stock deal worth $4.6 billion. The transaction is expected to close during the first half of 2013. AT&T previously aborted its attempts to acquire T-Mobile USA.

The deal will add a valuable spectrum to T-Mobile. It will also increase T-Mobile subscribers by 28 percent to 42.5 million. This acquisition will keep T-Mobile as the nation’s No. 4 carrier behind Verizon Wireless, AT&T, and Sprint Nextel. It is expected for both companies to continue until the end of 2015 with T-Mobile continuing its current contract format while both companies will provide no-contract and pre-paid plans under both brands. At the end of 2015, MetroPCS will be shut down. The new company will be a public company generating over $24.8 billion in revenue. The acquisition is expected to enhance the pre-paid plan market and provide broader selection for the customers. Some also expect the prices to go down due to new competitive power of T-Mobile with unlimited plans.

However, some speculate that Sprint Nextel may offer a better deal for MetroPCS Communications starting a war with T-Mobile.