T-Mobile US’ future may indeed be tied to an impending takeover attempt by Sprint, but just in case reports indicate that the carrier is also looking to bolster its own spectrum holdings in the sub-1 GHz band.
Citing unnamed sources, the New York Post reported that T-Mobile US is on the hunt to purchase 700 MHz licenses from smaller rivals in an attempt to boost its holdings in that important spectrum band. The report adds that such deals could require eventual divestitures should regulators approve the oft-rumored Sprint/T-Mobile US tie up.
“Nevertheless, T-Mobile has delivered proposals to several carriers offering to buy their so-called low-band spectrum — the key to urban markets like New York City because it penetrates buildings better than the high-band variety,” the New York Post notes.
Potential partners cited for such deals included U.S. Cellular and Vulcan Ventures, which is owned by former Microsoft executive Paul Allen. U.S. Cellular has been aggressive in picking up 700 MHz licenses in a number of deals, with that spectrum in turn used to power its LTE services.
T-Mobile US earlier this year made a big splash in the sub-1 GHz spectrum space, spending billions in a deal with Verizon Wireless. The carrier recently noted it expects to begin taking advantage of the greater propagation characteristics of that spectrum by the end of this year.
Late last week it was reported that T-Mobile US had gained a $2 billion break-up fee from Sprint should a proposed deal between the two operators fall apart. That amount would nearly match the $3 billion T-Mobile US parent company Deutsche Telekom received from AT&T following the collapse of their proposed deal back in 2011. The DT fee also included $1 billion worth of spectrum in the 1.7/2.1 GHz band.
News of T-Mobile US also looking to acquire more 700 MHz spectrum regardless of its future with Sprint would also show that the carrier perhaps learned from the AT&T fiasco, which cost T-Mobile US about nine months of operational uncertainty that it only managed to turn around beginning last year through its “Un-carrier” marketing strategy. T-Mobile US has also been aggressive in lobbying the Federal Communications in regards to rules for the upcoming 600 MHz incentive auction, with rules being put in place that will limit bidding participation from operators that already control significant sub-1 GHz spectrum.
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