T-Mobile wants to do something that will also benefit A&T and Verizon customers

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T-Mobile AT&T Verizon spectrum
T-Mobile has decided to swap some spectrum with AT&T and Verizon, Federal Communications Commission (FCC) filings show.

The company is exchanging spectrum across PCS, AWS, 700MHz, 600MHz, and 2.5GHz bands in numerous locations across the US, per data from Airwave Research shared with Light Reading. The transactions will be mutually beneficial and will allow all three companies to provide better wireless services to their customers than they currently do.

It's not unusual for wireless companies all over the world to trade licenses with each other to refine their coverage areas and improve network performance.

T-Mobile and AT&T's deal covers PCS, AWS-1, AWS-3, and 700MHz licenses. Its exchange with Verizon covers AWS, PCS, 600MHz, and 2.5GHz spectrum licenses.

The deals only involve the transfer of spectrum. They don't involve the exchange of assets or customers.

Many of these transfers will occur in the same markets and involve an even amount of spectrum swap. This means that in most cases, spectrum holdings will not increase.

The swaps will enable more efficient operations by ensuring wireless companies have larger, uninterrupted blocks of contiguous spectrum. They will also help companies align spectrum blocks across adjacent markets, potentially reducing interference and improving network performance.

FCC filing

FCC filing

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After some of these redistributions, spectrum holdings of one company may increase in some markets, allowing the increase of capacity and improved data speeds in existing coverage areas, thereby benefiting customers.

The deals will not affect any existing services and will essentially be invisible to customers. The FCC has determined after the initial applications that the deals will benefit consumers as more efficient use of spectrum will result in improved service. Any decrease in spectrum holdings will easily be managed through the use of other spectrums.

Overall, the deals will improve the quality of service and enhance wireless competition.

FCC filing

In most markets, the aggregate holdings of all three companies will remain below the spectrum screen levels. The FCC uses spectrum screen to determine reasonable levels of holdings.

In some markets, T-Mobile's spectrum holdings will exceed the allowable limit after the transaction closes, so they will require further review. It's being noted that despite triggering the screen, the acquisitions "will serve the public interest" and bolster competition. 

It's unlikely that the additional spectrum would allow T-Mobile to suppress competition, increase the cost for rivals, or harm the public interest in any other way. Competitors will continue to own significant spectrum assets to "sustain a competitive presence." The incremental increase in the holdings will also have no impact on the rivals' ability to deploy broadband technologies.

Ultimately, the spectrum holdings will largely remain unchanged but the transfers will allow AT&T, T-Mobile, and Verizon to use spectrum more productively. The companies will simply transfer their operations to the newly acquired spectrum.

FCC filing

FCC filing

T-Mobile has demonstrated an almost limitless demand for spectrum. Last month, the company expressed a desire to lease access to spectrum licenses from private equity firm Grain Management. In 2023, it agreed to purchase potentially all of Comcast's 600MHz spectrum holdings.

The company seems the most interested in the midband spectrum. It's more strategic about other bands and has been reallocating its millimeter wave (mmWave) spectrum.

T-Mobile wants to maximize its holdings, according to the company's networking chief, Ulf Ewaldsson. The company considers the 24GHz band as the most valuable for its mmWave deployments and will continue to use the band in venues where it wants extra capacity, such as stadiums.

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