Since 2017, T-Mobile has been steadily gaining subscribers, positioning itself as a strong competitor in the rapidly evolving wireless landscape. As the 5G era approached, T-Mobile made a pivotal move by acquiring 45% of the 600MHz low-band spectrum in an FCC auction. This 31MHz of low-band spectrum has played a crucial role in powering T-Mobile’s nationwide 5G network, capitalizing on its ability to cover large distances and penetrate buildings effectively, despite its limitations in delivering high-speed download data.
The Strategic Acquisition of Sprint
The turning point for T-Mobile came with its acquisition of Sprint for $26 billion. While many questioned this strategy, it became clear that T-Mobile was strategically targeting Sprint’s valuable mid-band 2.5GHz spectrum. Recognizing that the carrier with the largest mid-band spectrum would control the 5G landscape in the U.S., T-Mobile made a decisive move.T-Mobile established itself as the dominant player in 5G, proving that mid-band spectrum, while not as speedy as high-band mmWave, offered a more practical solution, covering greater distances and providing faster speeds than low-band.
Eventually, competitors Verizon and AT&T also recognized the immense potential of mid-band spectrum. They made substantial investments, collectively spending over $68 billion to acquire C-band spectrum in the 3.7GHz-3.98GHz frequency range. This move could enable them to challenge T-Mobile's leadership in the 5G marketplace effectively.
Recently, T-Mobile has opted to enhance its portfolio by securing additional low-band spectrum through leasing with Grain Management. The leased 600MHz airwaves are intended to fill coverage gaps in T-Mobile's nationwide 5G network. This flexible one-year lease opens possibilities for renewal or negotiation for permanent ownership in the future.
T-Mobile's Latest Spectrum Acquisition Valued at $675.2 Million
Utilizing advanced 5G radios, T-Mobile is poised to implement the newly acquired spectrum quickly. The arrangement with Grain Management encompasses 26 licenses spanning key areas, including Raleigh, North Carolina; Portland, Oregon; Sarasota, Florida; and Austin, Texas. According to Airwave Research, the spectrum involved in the T-Mobile-Grain deal has a valuation of $675.2 million.
In 2023, T-Mobile made notable moves in the 600MHz spectrum arena, purchasing most of Comcast's holdings and earlier acquiring 600MHz licenses from Columbia Capital for $3.5 billion. Amid these strategic expansions, T-Mobile has also divested from certain mid-band and high-band spectrums. In 2024, T-Mobile sold its entire 3.45GHz mid-band spectrum to Columbia Capital.
The FCC granted T-Mobile approval last year to relinquish some of its high-band millimeter-wave spectrum, which the company argued was not easily accessible for public benefit. Nonetheless, T-Mobile continues to focus on building its mid-band inventory, particularly in the 2.5GHz range that attracted its interest during the Sprint acquisition.
