T-Mobile to beef up its LTE network with spectrum from Verizon
Low-band spectrum covering approximately 150 million people will further improve customer experience in major metro areas, boosting in-building and breadth of network coverage
BELLEVUE, Wash., Jan 06, 2014 (BUSINESS WIRE) –T-Mobile US, Inc. (NYSE: TMUS) today announced that its wholly-owned subsidiaries T-Mobile USA, Inc. and T-Mobile License, LLC have signed agreements to purchase certain 700 MHz A-Block spectrum licenses from Verizon Wireless for $2.365 billion in cash and the transfer of certain AWS and PCS spectrum licenses, which have an aggregate estimated value of approximately $950 million. The transactions, combined with T-Mobile’s existing A-Block holdings in Boston, will result in T-Mobile having important low-band spectrum in 9 of the top 10 and 21 of the top 30 markets across the United States.
“This is a great opportunity to secure low-band spectrum in many of the top markets in America,” said John Legere, President and CEO of T-Mobile. “These transactions represent our biggest move yet in a series of initiatives that are rapidly expanding our already lightning fast network and improving its performance across the country. We will continue to find ways to advance our customers’ network experience just as our bold Un-carrier moves have shaken up the wireless industry to benefit consumers.”
These are significant transactions that will further enhance a rapidly improving network experience that T-Mobile expects will create shareholder value. Low-band spectrum substantially improves in-building coverage as well as coverage in rural areas. It also travels greater distances than high-band spectrum and therefore is a more efficient way to provide coverage at the edge of cities and in less densely populated areas. Combined with its existing Boston A-Block holdings, T-Mobile will have low-band spectrum covering approximately 158 million people — including New York, Los Angeles, Dallas, Houston, Philadelphia, Atlanta, Washington D.C., and Detroit. T-Mobile anticipates rolling out service and compatible handsets on this A-Block spectrum as early as the fourth quarter of 2014.
In 2013, T-Mobile continued its rapid LTE rollout, deploying 10+10 MHz 4G LTE in 43 of the top 50 metro areas and it is commencing substantive deployments of 20+20 MHz 4G LTE in 2014. The company launched its nationwide 4G LTE network in 2013, which currently covers approximately 209 million people in 273 metro areas.
Also, as part of the transaction, the two companies will realign spectrum blocks in certain markets, primarily in northern California and the Atlanta area.
The agreements are subject to approval by the Federal Communications Commission and the Department of Justice, and other customary closing conditions. Following regulatory approval, these transactions are expected to close in mid-2014.
TAP Advisors worked as financial advisors for T-Mobile on this transaction.[/PRESS RELEASE]
2. hurrycanger (Posts: 779; Member since: 01 Dec 2013)
I still cannot really take advantage of LTE yet. It's blazing fast in my area, but when my phone has LTE on (either auto or lte only), it gets troubles with text messages all the time and sometimes it doesn't receive calls. :/
Anyway. This is good news.
10. PersianHobo (Posts: 54; Member since: 29 Sep 2012)
you can't make/receive calls over LTE!!! *face palm* LTE is only for data for the time being
3. sniper1087 (Posts: 331; Member since: 31 Dec 2011)
20mhz is where its at we need those channels upgraded and we will see huge amounts of improvement, maybe speeds of up to 70 down.
4. PapaSmurf (Posts: 7367; Member since: 14 May 2012)
I already get 40mbps in Chicago. Not complaining at all.
5. mike2959 (Posts: 194; Member since: 08 Oct 2011)
This sounds great... However, when was the last time anyone seen a cell tower go up? If you say there's a bunch of mini sites etc... Check the FCC website. There's very little of those as well. Look at a coverage map from 3 years ago... Very little coverage improvements, speed yeah sure, coverage not so much.
6. joseram695 (Posts: 45; Member since: 28 May 2012)
The speeds are awsome by Detroit I get 59mbps down load and 20mbps upload on my S4.
8. Augustine (Posts: 613; Member since: 28 Sep 2013)
I had no signal bars at DTW and had to walk around until I found signal. In some places around Detroit, I got speeds over 30Mbps, but at others, not even 2G (Oxford, MI). Inside stores at the Somerset mall, no signal at all. Mind you, in all these places, family members with AT&T had a strong signal.
Don't get me wrong, I'm a satisfied T-mobile customer, but outside my home town there are some incredibly blind spots. This announcement is good news, but it'll probably take months to get the equipment installed and operating. But only if T-mobile is not sold, when this kind of capital investment is usually halted.
7. milesboy5 (Posts: 142; Member since: 07 Nov 2012)
I want to switch so badly to T-Mobile, but unfortunately until im done with college I will probably stay with Verizon. Hopefully in that time-span Tmobile continues to expand their LTE market or even better VoLTE
9. PersianHobo (Posts: 54; Member since: 29 Sep 2012)
why wait? Verizon is included with your student loans? lol
11. milesboy5 (Posts: 142; Member since: 07 Nov 2012)
or maybe since Im in college Im still under my parents plan