8-KMaterial AgreementsExhibits & Filings

T-Mobile US, Inc. 8-K Report, Material Agreement (Sep 15, 2009)

Filed September 15, 2009For Securities:TMUSTMUSZTMUSITMUSL

Summary

MetroPCS Communications, Inc. (now T-Mobile US, Inc.) has filed an 8-K report detailing a material definitive agreement with Ericsson Inc. This agreement, entered into by MetroPCS Wireless, Inc., an indirect wholly-owned subsidiary, establishes a Master Procurement Agreement (MPA) for Long Term Evolution (LTE) system products and services. This signifies a critical step in MetroPCS's strategic move towards deploying 4G LTE technology, aiming to enhance its network capabilities and service offerings to customers. The MPA outlines the terms for Ericsson to supply essential LTE components, including base stations, core network equipment, and related services. The agreement includes provisions for pricing, delivery milestones, and potential penalties for non-performance by Ericsson, as well as obligations for MetroPCS regarding prepayments and minimum purchase amounts. This strategic partnership is crucial for MetroPCS's network modernization and its ability to compete effectively in the evolving telecommunications landscape.

Key Highlights

  • 1MetroPCS Wireless, Inc. entered into a Master Procurement Agreement (MPA) with Ericsson Inc. on September 10, 2009.
  • 2The MPA focuses on the procurement of Long Term Evolution (LTE) system products and related services from Ericsson.
  • 3This agreement is a key step in MetroPCS's strategy to deploy 4G LTE technology.
  • 4Ericsson will supply essential LTE components such as eNodeBs, evolved packet core equipment, and operational support systems.
  • 5The MPA includes terms for initial purchase amounts, prepayments, and potential liquidated damages for both parties based on performance and purchase commitments.
  • 6The agreement has an initial term of four years, with options for renewal, and includes provisions for transition assistance services.
  • 7A press release dated September 15, 2009, announced the agreement, highlighting the vendors chosen for the 2010 4G LTE launch.

Frequently Asked Questions

The MPA's primary purpose is for MetroPCS Wireless, Inc. to procure Long Term Evolution (LTE) system products and services from Ericsson. This is a foundational step for MetroPCS to build and deploy its 4G LTE network, which is crucial for enhancing its service offerings and competitiveness.

Ericsson will provide a range of LTE system products, including wireless eNodeBs (base stations), evolved packet core equipment, mobility management entity equipment, operational support systems, and related power, cable, and transmission equipment. They will also provide licensed materials and services such as design, installation, and other technical support.

The MPA requires MetroPCS to make certain prepayments for LTE products and services during the first fourteen months. There are also provisions for minimum purchase amounts and potential liquidated damages if MetroPCS terminates the agreement early without cause or fails to meet purchase obligations. Conversely, Ericsson is also obligated to compensate MetroPCS if they fail to meet agreed-upon milestones or delivery dates.

The agreement became effective on September 10, 2009. The initial term of the MPA is four years from the effective date, or until a specified purchase amount of LTE products and licensed materials is met. MetroPCS also has the option to renew the MPA on an annual basis for up to five one-year renewal terms after the initial term concludes.