US mobile carrier T-Mobile has announced a deal with Verizon Wireless, the company will purchase a 700MHz A-Block spectrum from Verizon.
The deal is worth a massive $2.37 billion US dollars to Verizon Wireless, and it will help T-Mobile expand its mobile network in the US.
This new low band spectrum will cover around 150 million people in the US, and will apparently improve coverage in major metro areas.
Benefits of the 700MHz A-Block Spectrum
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.
The 700MHz A-Block spectrum is particularly valuable because of its ability to penetrate buildings and cover larger geographic areas with fewer cell sites. This means that T-Mobile customers can expect better service inside buildings and in rural areas where coverage has traditionally been spotty. The spectrum’s ability to travel greater distances also makes it a more efficient way to provide coverage at the edges of cities and in less densely populated areas, which is crucial for a carrier looking to expand its footprint.
Impact on T-Mobile’s Network and Customers
T-Mobile has said that they expect to roll out this new spectrum to compatible devices by the end of 2014, with the launch expected sometime in the fourth quarter. This rollout will be a significant milestone for T-Mobile as it continues to compete with other major carriers like AT&T and Verizon. The improved coverage and network performance will likely attract new customers and retain existing ones who may have been considering a switch due to coverage issues.
Moreover, the acquisition of the 700MHz A-Block spectrum aligns with T-Mobile’s broader strategy to enhance its network capabilities. The company has been aggressively expanding its LTE network and investing in new technologies to improve customer experience. This new spectrum will complement T-Mobile’s existing holdings and provide a more robust and reliable network for its users.
In addition to improving coverage in major metro areas, the new spectrum will also benefit rural communities. Many rural areas in the US have limited access to high-speed mobile internet, and this new spectrum will help bridge that gap. By providing better coverage in these areas, T-Mobile can offer more consistent and reliable service to customers who live outside of urban centers.
The deal also has financial implications for both companies. For Verizon, the $2.37 billion will provide a significant boost to its financial resources, which can be used for further investments in its own network and services. For T-Mobile, the investment in the 700MHz A-Block spectrum is expected to create shareholder value by enhancing the company’s competitive position in the market.
In conclusion, T-Mobile’s acquisition of the 700MHz A-Block spectrum from Verizon is a strategic move that will significantly enhance its network capabilities and coverage. The deal is expected to benefit millions of customers across the US, particularly in urban and rural areas where coverage has been a challenge. With the rollout expected by the end of 2014, T-Mobile is poised to offer a more reliable and robust network, further solidifying its position as a major player in the US mobile market.
Source TMO News
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