T-Mobile reportedly spends more cash to add more spectrum for 5G service
T-Mobile’s decision to focus on low and mid-band 5G has helped it battle Verizon and AT&T
The reason why these decisions were so important is because of the different characteristics between low-band, mid-band, and mmWave spectrum. When Verizon and AT&T decided to start their 5G build-outs with mmWave, they were probably thinking that the faster download speeds available would attract subscribers. But what these two carriers didn’t seem to consider was the limited reach of mmWave which makes finding such signals akin to finding a needle in a haystack.
T-Mobile is arguably the 5G leader in the states
T-Mobile, on the other hand, focused on its low-band and mid-band spectrum. Used for its nationwide service, low-band signals travel greater distances and can easily penetrate structures. The problem is that low-band signals deliver download speeds in the LTE range although such signals are easier to find.
While the quarterly 10Q submitted to the SEC did not mention which company bought the spectrum, the firm’s earnings call hinted that T-Mobile purchased the airwaves to “augment their current capacity.” Shentel had been using the 2.5GHz spectrum for use with its fixed wireless internet service called “Beam Internet.” The value of Shentel’s 2.5GHz holdings had risen recently which the company wanted to cash in on according to its CFO.
The purchase adds to the wireless provider’s 2.5GHz spectrum that T-Mobile took over when it bought Sprint; it also spent $304 million this past September during the FCC’s Auction 108 to control even more 2.5GHz airwaves. The 7,156 2.5GHz licenses it won cover 81 million people, mostly in rural areas.
T-Mobile CEO Mike Sievert has done a tremendous job with the carrier
Some analysts were concerned that when CEO John Legere left T-Mobile in 2020, the carrier would lose the amazing momentum it had when it rose from dead last among the four major carriers to become the second-largest wireless provider in the states. Under Legere, T-Mobile also became the most innovative of the four majors. But Legere’s right-hand man at the time, Mike Sievert, has done a tremendous job as CEO and this has been reflected in the company’s stock price which recently set a 52-week high at $154.38.
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