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T-Mobile raises $2 billion more for the FCC auction by selling notes to parent Deutsche Telekom

Posted: , by Alan F.

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T-Mobile raises $2 billion more for the FCC auction by selling notes to parent Deutsche Telekom
An SEC filing by T-Mobile indicates that the carrier is issuing $2 billion in senior notes to its corporate parent, Deutsche Telekom. The latter owns 65% of the third largest carrier in the U.S.; by purchasing the notes, the German telecom is adding to T-Mobile's war chest for the FCC auctions of low-frequency 600Mhz spectrum that starts on March 29th.

T-Mobile has previously said that it would spend as much as $10 billion during the auction. Low-frequency airwaves travel farther and penetrate buildings better, which is why there is so much interest in bidding for the spectrum. T-Mobile uses similar low-frequency 700MHz airwaves for its Extended Range LTE network.

The senior notes carry an interest rate of 5.3% and mature in 2021. The proceeds from the sale of the notes must be used to purchase spectrum from the auction. If the funds are not required for the auction, they can be used first for debt refinancing, and then for general corporate purposes.

Other firms expected to spend some serious money during the auction include AT&T, which also has earmarked up to $10 billion for bidding. Verizon will also be an active participant, and Dish Networks could be a wild card. Also in that latter category is Comcast. Sprint says that it has all the spectrum it needs and plans on sitting out the auction.
 
source: SEC via Reuters

9 Comments
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posted on 07 Mar 2016, 19:41 4

1. djkhalid (Posts: 113; Member since: 01 Jul 2013)


As a T-mobile customer this is great news! They have done more than any other carrier in the US in the past couple of years

posted on 08 Mar 2016, 00:33 1

3. Bernoulli (Posts: 4093; Member since: 01 Sep 2012)


No offense, but coverage wise it's always a staggering improvement when you had almost nothing to begin with.

posted on 08 Mar 2016, 04:49 3

4. joevsyou (Posts: 850; Member since: 28 Feb 2015)


can't say john hasn't flipped the company upside right and driving change in the industry

posted on 08 Mar 2016, 11:06

7. Bernoulli (Posts: 4093; Member since: 01 Sep 2012)


Which is why I said 'coverage wise'

posted on 08 Mar 2016, 06:35 1

5. elitewolverine (Posts: 5188; Member since: 28 Oct 2013)


only in rural areas really, I have had then for over a decade, and in my city coverage was never a problem, its when I traveled that is was like....well not this road today. Now its what 97% of Verizon. Considering I have saved literally thousands. Nearly 40k with how many lines etc I have...I don't mind one bit.

posted on 08 Mar 2016, 11:09

8. Bernoulli (Posts: 4093; Member since: 01 Sep 2012)


Not just rural areas, I live in a 200k city and up until recently I'd lose service inside my school. Don't speak for everyone.

posted on 08 Mar 2016, 08:25 1

6. Acdc1a (Posts: 274; Member since: 21 Jan 2016)


In the last 12 months coverage has increased substantially. It's nearly on par with AT&T at a minimum. Any further improvement would be far from staggering.

posted on 08 Mar 2016, 11:15

9. Bernoulli (Posts: 4093; Member since: 01 Sep 2012)


Exactly increased substantially when you have little to begin with, and I was talking about since 2013. I traveled over the break from Dallas to fort Collins Colorado, and I roamed on at&t the majority of the way there so definitely not nearly on par with at&t.

posted on 07 Mar 2016, 23:05

2. JMartin22 (Posts: 1984; Member since: 30 Apr 2013)


I hope they snatch up some of that 600 MHz frequency. It would be a big boon to their coverage.

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