T-Mobile US has spent at least US$1.1bn on 700 MHz spectrum licences so far this year as it seeks to expand its 4G network. The spending spree looks set to continue as the operator has said it could spend up to US$10bn at the upcoming incentive auction.
T-Mobile US (NYSE:TMUS) has spent at least US$1.1bn on 700 MHz spectrum licences so far this year as it seeks to expand its 4G network.
T-Mobile said in a recent SEC filing that it spent US$600m this January on acquiring spectrum licences covering nearly 20 million people in seven major metropolitan markets.
In addition, it said it had inked agreements with “multiple third parties” in January and February to acquire 700 MHz spectrum licences covering about 48 million people for some US$700m, as well as to exchange certain spectrum licences.
“In the first quarter of 2016, spectrum licences to be exchanged of US$0.2bn will be transferred to held for sale and included in other current assets,” the company added.
T-Mobile said the February spectrum purchases will increase its total low-band spectrum holdings, which support its ‘extended range LTE’ service, from 210 million POPs to 250 million POPs upon closing. The company has said extended range LTE travels up to twice as far as mid-band spectrum and works up to four times better in buildings.
Data by spectrum analysis firm Allnet Insights & Analytics shows that T-Mobile has entered into agreements with nine companies this year to buy 700 MHz spectrum licences. These agreements are subject to the approval of the Federal Communications Commission (FCC). The sellers include C Spire Wireless, Cavalier Wireless, Cellcom, Continuum 700, Dryad, Infrastructure Networks, Texas Energy Network, Syringa Wireless and West Central Wireless.
And the spending spree is far from over. T-Mobile has said it could spend up to US$10bn at the incentive action of 600 MHz spectrum, set to begin in late March.
In its latest earnings presentation, T-Mobile said it more than doubled its geographic 4G footprint last year, extending its reach to 305 million people.
