T-Mobile to sell $1 billion in debt to fund additional purchases of 700MHz spectrum

T-Mobile, shopping for more 700MHz spectrum, raises $1 billion
Low-frequency spectrum is more in demand than high-frequency spectrum. The reason isn't too difficult to figure out. Low frequency air waves travel farther and penetrate buildings better. It is the basis for T-Mobile's Extended Range LTE service which is available in over 170 markets in the states. Thanks to the deep pockets of T-Mobile's corporate parent Deutsche Telekom, the nation's third largest carrier plans on being a big player in the FCC's auction of 600MHz spectrum this year; some estimate that T-Mobile will spend as much as $8 billion during the auction.

Today, it was announced that T-Mobile will issue $1 billion in debt to help fund more purchases of 700MHz A Block spectrum. T-Mobile has been purchasing such spectrum in the South and Southwest from Cellular South, Cavalier, C700 and more. By doing this, the mobile operator gets to fill in the gaps in its coverage.

Based on a map produced by Allnet Insights & Analytics, T-Mobile has the largest holdings of 700MHz A Block licenses in the U.S. And the mobile operator plans on putting these airwaves to good use. CFO Braxton Carter sees the company adding 30 million to 40 million more POPs in areas where it currently offers no service. Right now, T-Mobile's 4G LTE signal covers 305 million POPs in the states.

source: T-Mobile via FierceWireless

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