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