There will be a few changes in the way T-Mobile and MetroPCS do business.

The two phone giants are set to merge in hopes of better stability. T-Mobile USA, the fourth biggest U.S. wireless carrier, and MetroPCS, ranked fifth, will come together in a multi-million-dollar deal.

According to an announcement made this morning by T-Mobile, the merger is an effort to make "the leading value carrier in the U.S. wireless marketplace."

MetroPCS will be absorbed into T-Mobile as they keep the name and as well as trading under T-Mobile on the New York Stock Exchange. John Legere, president and CEO of T-Mobile, will retain his position after the merger.

The merger is planned as a recapitalization where MetroPCS will acquire all the capital stock from T-Mobile through issuing 74 percent of Metro's common stock to their parent company, Deutsche Telekom, and the rest to shareholders. MetroPCS will also pay $1.5 billion to their shareholders while declaring a one for two reverse stock split.

Both companies feel the merger will help customers as they'll be able to offer greater network coverage as well as one solid network for LTE connectivity. They will also continue to specialize in no-contract service plans as it brings millions of combined subscribers while continuing to try and keep their prices competitive.

"Ultimately, this combination will create a stronger wireless provider nationally with broader value offerings to better serve our combined customers and drive shareholder value," MetroPCS chairman and CEO Roger Linquist stated in the release.

This also will help to solidify their position in the market against their main competitors AT&T and Verizon as the top carriers and Sprint for competition in moderately priced services.

The merger is expected to be finalized in early 2013.

Tags: t-mobile metropcs merger