Sales at MetroPCS are rising faster than for many other providers, and its margins are among the fattest. UBS analyst John Hodulik predicts that Metro
will "have a similar impact on wireless as Southwest had on the airline industry."
Leap and MetroPCS both target younger, lower-income users, many from ethnic groups. But to compete with the giants, MetroPCS and Leap will need scale, deeper pockets--and possibly each other. Analysts speculate that a merger between the two companies--or a combination with a larger carrier such as Alltel--will be necessary to ensure their long-term viability.
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