Even before T-Mobile bought Sprint for $26 billion, it had been making some big acquisitions that helped it prepare to bring 5G wireless to Americans. In 2017, the company spent $7.9 billion to buy 31 MHz of low-band 600 MHz in an FCC auction. The 600 MHz low-band airwaves will be the foundation for the carrier’s expanding reach for 5G service nationwide. With the 600 MHz spectrum now in low-band use, T-Mobile planned to sell 13.5 MHz of low-band 800 MHz spectrum to Dish.
T-Mobile’s 5G spectrum layer cake | Image courtesy of T-Mobile
Regarding the 800MHz spectrum, T-Mobile CEO Mike Siebert said, “We have interested parties. We have non-binding expressions of interest. Stay tuned.” While the second-largest U.S. wireless provider isn’t desperate, the massive cash upfront of about $3.6 billion is significant with Siebert always looking for his next big acquisition. After all, T-Mobile is awaiting regulatory approval for its $4.4 billion acquisition of MVNO Mint Mobile. TD Cowen analysts believe T-Mobile rivals Verizon and AT&T will participate in the auction, but both are reportedly struggling financially. Additionally, previous reports have stated that Verizon and AT&T cannot acquire the 800MHz spectrum without prior U.S. government approval.
Low-band spectrum is often used by carriers for nationwide 5G networks because its radio waves can travel long distances. However, low-band is only slightly faster than 4G LTE. Mid-band spectrum is considered best suited for 5G. It can’t travel as far as low-band, but it can travel farther than high-band mmWave signals. Mid-band may not be as fast as mmWave, but it is much faster than low-band. T-Mobile acquired Sprint for $26 billion in 2020, giving it a large chunk of the company’s 2.5GHz mid-band spectrum.
