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T-Mobile drops Sprint-era deadweight for a competitively devastating 5G boost

T-Mobile got exactly what it wanted to improve service for both rural and urban customers.

t-mobile-grain 600 MHz 800 MHz licenses deal
The FCC approves the T-Mobile-Grain spectrum swap. | Image by CNN
Not all spectrum is created equal, and sometimes companies find themselves stuck with licenses they don't want. That was the headache T-Mobile inherited after merging with Sprint. Luckily for the Un-carrier, the Federal Communications Commission (FCC) just made things easier.

Spectrum swap



The FCC greenlit a deal allowing T-Mobile to swap its 800 MHz licenses for 600 MHz licenses owned by private investment firm Grain Management.

Grain is acquiring 800 MHz licenses consisting of the 817–824 MHz and 862–869 MHz paired bands. It is broadband-ready, low-band spectrum. Grain will also pay T-Mobile $2.9 billion.

The 600 MHz licenses that T-Mobile is getting will boost capacity and speeds for its customers. 

To address concerns about spectrum warehousing, Grain has been asked to abide by three-year interim and eight-year final buildout deadlines. The FCC's goal is to ensure swift deployment of the spectrum, whether for direct-to-device (D2D) services, terrestrial operations, or both.

T-Mobile's 5G network will get better


T-Mobile has been trying to dump those 800 MHz airwaves for years. As Recon Analytics analyst Roger Entner pointed out, it has finally gotten rid of the frequencies it had no use for.


The company is acquiring 10 megahertz of 600 MHz spectrum covering 15% of the US population. The company can rapidly roll out the spectrum, as it's already integrated into its network via a lease agreement with Grain. 

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The 600 MHz spectrum licenses are spread across the US and will improve the reach of its 5G signals. The deal is another example of T-Mobile's continued interest in low-band frequencies, which can travel farther than midband and highband spectrum, but cannot carry as much data.

They won't just add more capacity to T-Mobile's network, but will also expand cell coverage in low-density rural regions and increase building penetration for urban customers.

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Silencing critics  


The Rural Wireless Association argued that the 600 MHz spectrum T-Mobile was getting was more valuable than the 800 MHz spectrum it was letting go of, due to the former being more usable and competitively impactful. The FCC rejected that claim, noting that the deal will result in a net reduction in T-Mobile's holdings.

Looking ahead


T-Mobile won 102 licenses at the recent AWS-3 auction. More spectrum will be up for grabs at next year's upper C-band auction, where carriers will be duking it out for 160 megahertz of airwaves.
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