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T-Mobile to Buy Up to $3.3 Billion of Airwaves From Comcast

T-Mobile to Buy Up to $3.3 Billion of Airwaves From Comcast

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In a strategic move set to reshape the telecommunications landscape, T-Mobile US Inc. has announced its plans to acquire airwaves from Comcast Corporation in a deal valued at up to $3.3 billion. 

T-Mobile to Buy Up to $3.3 Billion of Airwaves From Comcast
Image Source: bloomberg.com

The agreement signifies a significant shift in the competitive dynamics of the wireless industry and comes as Comcast pivots its focus in the 5G spectrum arena. Comcast initially unveiled ambitious plans to establish a 5G network for its Xfinity Mobile service last year, relying on spectrum in the 600MHz band and the Citizens Broadband Radio Service (CBRS) spectrum in the 3.5GHz range. However, Comcast’s recent experiences with 5G field tests using CBRS spectrum have exceeded expectations, leading the company to reevaluate its spectrum assets.

In a blog post published on Comcast’s website, the company acknowledged the impressive efficiency and importance of the CBRS band within its 5G network strategy, prompting a strategic shift. Consequently, Comcast now views its 600MHz spectrum holdings as surplus to requirements, paving the way for the groundbreaking deal with T-Mobile.

Under the terms of the agreement, T-Mobile will lease the 600MHz spectrum from Comcast, with a plan to make quarterly lease payments, followed by a final purchase payment of approximately $3.3 billion. The deal, however, remains subject to approval by the Federal Communications Commission (FCC) and is expected to close by 2028, assuming regulatory clearance.

The spectrum acquisition is set to extend T-Mobile’s network footprint, covering major metropolitan areas such as New York, Orlando, and Kansas City, among others. For T-Mobile, this represents an opportunity to bolster its existing 600MHz-based 5G network, which was initially launched in 2019. This move follows T-Mobile’s substantial $3.5 billion investment in an additional 600MHz spectrum in August of the previous year.

Notably, Comcast retains the option to reclaim the 600MHz airwaves if future needs arise. The company’s willingness to retain flexibility underscores the rapidly evolving nature of the telecommunications industry and the importance of spectrum assets in delivering high-quality 5G services.

Also Read: Alibaba CEO Elevates AI to Key Priority in Group Revamp Plan

The acquisition of these airwaves aligns with T-Mobile’s commitment to expanding its 5G capabilities and providing enhanced connectivity to customers across the United States. With this strategic move, T-Mobile aims to solidify its position as a formidable player in the ever-evolving 5G landscape. At the same time, Comcast pivots towards optimizing its 5G network with newfound spectrum efficiency.

As the telecommunications sector continues to undergo rapid transformations, this agreement between T-Mobile and Comcast exemplifies the industry’s adaptability and willingness to collaborate for the benefit of consumers, ensuring the delivery of cutting-edge 5G services in the years to come.

T-Mobile

From the consumer’s favorite, how T-Mobile US became the third-largest wireless carrier in America?

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USA based wireless network operator T-Mobile US has started in 1994. While it is still a dominating wireless service provider in America. It is providing data services and wireless voice services all across the country. Headquartered in Bellevue, Washington, the firm is known as the third-largest wireless carrier in America. The firm has also crossed over 100 million customers in 2020. Magenta & Magenta Plus, and T-Mobile Essentials are some of the well-known plans of the company.

The backstory of T-Mobile Foundation

The roots of T-Mobile US have traces in the establishment of VoiceStream Wireless PCS. Back in 1994, the firm had started as one of the subsidiaries of Western Wireless Corporation. While after five years, the firm got separated from the parent firm. In 1999, Deutsche Telekom AG purchased VoiceStream Wireless and renamed T-Mobile USA in 2002. However, in 2013, it got merged with MetroPCS and was again renamed T-Mobile U.S.

About T-Mobile US

T-Mobile
Image Source: t-mobile.com

American wireless carrier T-Mobile US is the third-largest firm in the country in that sector. The first owner of the firm Deutsche Telekom holds 43% shares of T-Mobile US. While SoftBank Group owns 24% shares, and the remaining 33% shares come under public holding. T-Mobile US is primarily providing wireless data and voice services in America. As per the consumer report 2015, the firm ranked first among other American Wireless carriers.  Recently, Sprint Corporation and T-Mobile US have merged, making Sprint a subsidiary of T-Mobile. 

Further exploration of business

Within five to six years of establishment, the firm focused on the acquisition of regional network operators. So that the network of T-Mobile US can map most of the regions in the country. Aerial Communications Inc. and Omnipoint corporation are examples of such acquisitions, made in the year 2000. Thereafter, the firm bought licenses to operate a cellular communications network, providing coverage in many parts of America. In 2017, the company purchased a 600 MHz nationwide license. Recently, this network reaches 8,900 towns and cities, covering over 248 million users. It also provides an LTE network that supports VoLTE, like JIO’s LTE, which operates in India. However, the firm had launched its first-ever 3G phone in the market in 2007.

Products and Plans for users

Magenta & Magenta Plus, T-Mobile ONE, T-Mobile Essentials are some of the well-known products of the company. In fact, Magenta plans are the next level of T-Mobile One Family of plans. It is actually based on the existing features of the previous one, but with add-ons. Like HD streaming, 20GB HotSpot Data, etc. As well, the firm offers specialized plans for seniors, Military Personnel, and most importantly, the first responders. For them, the firm provides offers like 50% off the pricing of Magenta and Magenta plus plans.

T-Mobile Essentials, another plan of the firm offers other wonderful services to the users. It comes with unlimited Talktime, SMS plan, and data service. The cost of the plan is in fact lower and affordable to all.

Awards and Achievements

The firm has received numerous workplace awards and appraisals for delivering the best in the wireless industry. Disability Equality Index which shows the disability inclusion allotted 100 points to the firm. As well, the Human Rights Campaign honored it as the best place to work for LGBT Equality for back to back four years. Military Friendly also marked its name in the list of top 100 Military Friendly Employer. Most importantly, the company is among the firms recognized as Most Ethical Companies in the world. Apart from many such renowned awards, the firm has been awarded on a local basis as well.

Policy Maker and President at T-Mobile US- Michael Sievert

He is CEO, president, and one of the board of directors. Earlier, he worked at IBM, Clearwire. While Michael started his career at Procter & Gamble. As well, he served as an executive vice president at E-trade. In his past career, apart from being a CEO of Discovery Bay Games, Sievert also worked at AT&T wireless. Additionally, he played an important role at Global Windows Group of Microsoft. There he was a part of the team that worked to launch Windows Vista. Apart from serving as an employee, he also helped in founding Switchbox Labs. Later on, this business was acquired by Lenovo.

Coming to the journey of Michele at T-Mobile US, he joined the firm as CMO. After that, he became COO and reached the post of CEO in the year 2020. Sievert’s contribution to rebranding and marketing the business of T-Mobile US is remarkable.

Amazon Wants to Enter the Telecom Industry; Plans to Buy Boost from Sprint

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Amazon is the biggest tech company, and it has spread its arms in almost everything. And now, the company is planning to expand into the telecom industry, too. According to a report by Reuters, Amazon is planning to acquire the prepaid cellphone wireless service Boost Mobile from its parent company Sprint.

The deal with Sprint not only will make Amazon fourth largest telecom services in the US but also may provide it with the access to the T-Mobile’s wireless network for a long period of time, as both Sprint and T-Mobile are under the process of a merger. The deal between T-mobile and Sprint will be a $26 billion merger if Sprint will be able to convince antitrust regulators for the merger.

But according to a recent report from Bloomberg, the regularity authority does not want that the number of wireless carriers be less than four, and the merger is actually, leading to that. So the two companies are working towards bringing an entirely new carrier, such that they might be giving away some of their spectrum to the new company and finalise the merger.

Boost is a subsidiary of Sprint, but is out of the merger contract, as Sprint has already decided to sell the company. So there are no chances that after the deal, T-Mobile can own it. In fact, the company that will own Boost will have access to the Sprint’s wireless network, but not T-Mobile’s. But according to the report from Reuters, acquiring Boost will provide Amazon with access to both the company’s combined network for a span of six years.

Since the news has been making rounds, there is a questing hitting everyone’s mind, “Why Amazon would want to enter the telecom business?” It is quite simple. The company has been expanding into almost every field. It is the biggest eCommerce platform and has got its cloud computing arm. The company has got its retail stores, streaming service, and now it is also off to start its own delivery service. So why not expand into telecom?

T-Mobile Starts to Roll Out its Invite-only Home LTE Internet Service

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T-Mobile, on Thursday, announced that it is piloting a new in-home invite-only internet service on LTE, for the rural and underserved areas in the U.S., through a news post. According to the post, though the service the company intends to connect 50,000 homes this year. The service is only available for T-Mobile‘s existing users and will get the service through invites-only.

T-mobile
Image Source: wsmv.com

This limited service will cost $50 a month for its subscribers, and it is a trial for the company’s future cable internet business. Since it is about to launch its 5G service, soon, ahead of that, it is also the test for the company that it is capable of delivering the 5G services to its huge user base.

The new wireless technology will help the home users get rid of the broadband wires, and they will not have to roam around the router to get the full coverage. For now, the company is providing a 50 Mbps over the 4G LTE network, with no data caps, and after the launch of the 5G network, the speed will, eventually, be raised to 100Mbps.

“For now, only a limited few T-Mobile customers – the goal is to reach 50,000 households this year, less than .04% of U.S. households. But the New T-Mobile plans to cover more than half of U.S. zip codes by 2024 with the capacity for 9.5 million households to cut the cord.” stated the company in the news post.

Earlier this month, T-Mobile had also announced that if it fulfils its pending merger with Sprint, it will launch its 5G home internet soon. So the in-house 4G home internet can be a hint on that the company is ready for its 5G home internet service. By providing the internet service to the rural areas, the company is also trying to warm FCC decision makers up to the merger.

Currently, AT&T and Verizon are already bracing up for the launch of their home internet service, and if the merger succeeds, there will be lesser competition left for T-Mobile in the wireless service industry. The company also claimed that this new service will help Americans choose better internet service and will save billions of dollars.