Rumor: Sprint and T-Mobile team up to bid on spectrum
0. phoneArena 16 Jul 2014, 01:43 posted on
Speculation has T-Mobile and Sprint putting together a $10 billion war chest, to use in next year's auction of 600MHz spectrum being conducted by the FCC. The money is believed to be coming from the financing package that SoftBank is obtaining in order to buy 50% of T-Mobile's shares. The partnership for the bidding will be led by T-Mobile...
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1. Planterz (Posts: 780; Member since: 30 Apr 2012)
I'm not very enthusiastic about the T-Mobile/Sprint merger, but even if that falls through, getting some low-frequency bandwidth is definitely good for T-Mobile (and Sprint, I guess). T-Mo's already got 700MHz (band 12) on the way, but more is always better.
2. Doakie (Posts: 1251; Member since: 06 May 2009)
Sprint has a nations worth of 800 MHz spectrum. I'm surprised no one thinks of that as "low frequency" spectrum.
The only way I can possibly think a T-Mobile Sprint merger would work is if T-Mobile was the surviving company merging all Sprints customers and spectrum into their portfolio. I know that's what current rumors have said but I'll believe it when I see it. Sprint taking over would just mean a horribly slow moving incompetent company being put in charge of A LOT of customers.
3. a_merryman (Posts: 675; Member since: 14 Dec 2011)
People do think of it as low frequency spectrum. They still can't use it in IBEZ regions, and they can only make a FDD 5 MHz LTE carrier on it. They are still dwarfed by AT&T and VZW in the low frequency game.
4. Joshua9007 (Posts: 76; Member since: 08 Jun 2012)
I agree that the duopoly has substantially more capacity in the low bandwidth game, but since sprint has fewer customers and most of them are not in areas outside the current 1900Mhz PCS footprint, the 800Mhz spectrum will serve to fill in some gaps in coverage and extend the current coverage a few miles further past what they currently have. Plus with fewer customers in those areas, the speed and reliability of their offering will be fine at least until they purchase and launch 600Mhz spectrum.
5. a_merryman (Posts: 675; Member since: 14 Dec 2011)
Oh yeah, they have enough low frequency to get by until the 600 auction so long as their subscribers don't skyrocket in the mean time. Especially since 2.5 GHz will be taking the bulk of the data transfers. I was just pointing out that Sprint and T-Mo are both in horrible positions when it comes to low frequency. Truthfully, AT&T looks to be in the worst shape for performance in the long run, they don't have much contiguous spectrum across the country.