T-Mobile Hopes $8 Billion Spectrum Buy Helps It Topple Verizon A recent report from Open Signal has found that T-Mobile and Verizon Wireless are now neck in neck in terms of overall network coverage and speed. The full report studied wireless broadband speeds in 33 different cities, and gives T-Mobile a slight edge in overall network speeds with an average rate of 14.7 Mbps, compared to 14.63 Mbps for Verizon Wireless. And while Verizon contested the results, it's becoming pretty clear that T-Mobile is now closely nipping on big red's lead when it comes to connection coverage and quality.

And now, T-Mobile is hoping that a massive $8 billion investment in spectrum unveiled last week will finally put the company on equal footing with industry-leader Verizon. More specifically, T-Mobile paid $7.99 billion for 1,525 600MHz licenses spread across the United States, which should dramatically improve the company's existing LTE network footprint. A company press release is quick to point out that the spectrum acquisition accounted for 45% of all low-band spectrum sold, covering 100% of the US and Puerto Rico and "enabling the Un-carrier to compete in every single corner of the country." "With this purchase, T-Mobile now has significantly more low-band spectrum per customer than any other major provider and nearly triple the low-band spectrum per customer than Verizon," T-Mobile said. The spectrum buy, which quadruples T-mobile's low-band spectrum holdings, should specifically help T-mobile shore up its more rural and suburban coverage, which still tends to be the company's Achilles' heel when it comes to competing with Verizon. T-Mobile says the company began preparing for the new 600 MHz spectrum last year, and while the company will begin to utilize these new holdings "later this year in parts of the country" -- it will still take several years for most users to notice. "T-Mobile now has the largest swath of unused low-band spectrum in the country. That is a BFD for our customers!” added Legere. “Because T-Mobile customers will be able to speed on a brand-new, wide-open wireless freeway, while carrier customers have to crawl along on their clogged, congested low-band freeways." That's likely a problem for AT&T and Verizon, who were already losing postpaid customers to the company. In fact, T-Mobile was already adding more postpaid subscribers per quarter, than any other carrier for several years running. The only speed bump on the horizon? A potential acquisition by either Sprint or Comcast. »youtu.be/IfkA7Ct8s5Y







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Most recommended from 68 comments



davidc502

join:2002-03-06

Mount Juliet, TN 26 recommendations davidc502 Member Switched to T-Mobile last week I switched from at&t to TMobile last week, and so far it's been great.



Paying a lot less per month for TMobile unlimited as compared to att which in my areas had a hard time eeking out 1mbps. I consistently get 15mbps or more now, and the call quality is great.



Go TMobile and lets hope you don't get bought out. fioseller

join:2007-08-31

Lindenhurst, NY 15 recommendations fioseller Member 1 year and counting I switched from ATT to T-Mobile 1 year ago. I was with ATT for 15 years. It would take a lot to have me leave T-Mobile. Saving money and better service.

skytom

join:2012-10-18

Northampton, MA 12 recommendations skytom Member Masterful turn-around... appaulse to John Legere and company! John Legere and company's turn-around of T-Mobile has been masterful. One for the textbooks. Independent of any potential buyout or whatever the future holds, they listened to consumers, -- or more likely internal selves, -- and methodically amidst all the extravagant tweets and comments, built a company. This while others flounder or revert to protectionist measures while bleeding money to their executives, investors, or ill-advised investments. Well done!

Packeteers

Premium Member

join:2005-06-18

Forest Hills, NY ·Verizon FiOS

·Charter

Asus RT-AC3100

(Software) Asuswrt-Merlin

5 recommendations Packeteers Premium Member buyout setup



get into the wireless business, - but we can enjoy the simulated competition while it lasts t-mobile is probably doing all this so a cabletv company will buy them so they can instantlyget into the wireless business, - but we can enjoy thecompetition while it lasts tmc8080

join:2004-04-24

Brooklyn, NY 3 recommendations tmc8080 Member pricing Tmo is still going to have to be more aggressive on pricing. You can't BUY (spectrum/infrastructure) your way to #1..

chris

Poor Impulse Control

Premium Member

join:2000-08-13

Middletown, CT 3 recommendations chris Premium Member Aquisition? From the article:



"The only speed bump on the horizon? A potential acquisition by either Sprint or Comcast."



Not trying to start anything, I'm genuinely curious; Is Sprint in a position the acquire anyone? Comcast is much more believable IMHO.