T-Mobile's spectrum sale could leave valuable airwaves unused, Ted Cruz fears

T-Mobile's plan to part with a large portion of its 800MHz spectrum portfolio is drawing fresh scrutiny from Washington, more than a year after the carrier struck a deal with investment firm Grain Management.

While the transaction was initially presented as a way to optimize spectrum holdings and strengthen T-Mobile's nationwide 5G network, lawmakers are now questioning whether the frequencies will actually be deployed or left unused for years.

Selling spectrum, buying spectrum

T-Mobile agreed in 2024 to sell its 800MHz licenses to Grain Management in a transaction valued at $2.9 billion.

In exchange, T-Mobile would receive cash and Grain's portfolio of 600MHz spectrum licenses. The carrier has long relied on low-band 600MHz frequencies to provide broad nationwide 5G coverage, while its 2.5GHz mid-band assets acquired through the Sprint merger power its faster Ultra Capacity 5G service.

Why do it?

In short: T-Mobile's 5G subscribers are expected to take advantage of the new spectrum, so service should get better.

At the time the agreement was announced, Grain Management said it intended to market the 800MHz spectrum to utilities, infrastructure operators, rural carriers, and specialized telecom providers. T-Mobile viewed the arrangement as a way to expand its existing 600MHz footprint and improve customer experiences in certain markets.

The carrier's strategy of combining low-band coverage with extensive mid-band holdings helped it establish an early lead in US 5G deployment after spending nearly $8 billion on 600MHz licenses in 2017 and later acquiring Sprint's valuable 2.5GHz spectrum assets.

Ted Cruz has something to say

Now, however, Senate Commerce Committee chairman Ted Cruz is urging the Federal Communications Commission (FCC) to attach strict deployment conditions to any approval of the transaction. In a letter obtained by Reuters, the Republican senator argued that the US cannot afford to leave valuable spectrum underused as mobile data consumption continues to rise.

Cruz pointed to Grain Management's request for a 12-year extension of its build-out requirements and questioned whether the company intends to put the frequencies into service quickly or simply hold them until their value increases.

According to Cruz, allowing spectrum to sit idle for speculative purposes could undermine both economic and national security interests.

We need more!

The concerns come as wireless traffic continues to surge. Some reports say Americans used a record 132 trillion megabytes of mobile data in 2024, up from the previous record of 100 trillion megabytes set a year earlier.

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