Not to be outdone by Verizon's 5G network expansion announcement, T-Mobile took to the airwaves on the same day to detail its own plans for 5G dominance over the other big two US carriers. It currently boasts the fastest median 5G download speeds and the widest 5G coverage, even though Verizon is able to achieve similar speeds with its newfangled C-band 4G network, and way better coverage overall.
Still, while Verizon and AT&T just shelled out big bucks for spectrum that will allow them to catch up to T-Mobile's layer cake approach made possible by the merger with Sprint, the Un-carrier has a head start, and aims to keep it.
T-Mobile 5G network coverage plans by 2023
97% of Americans with slow 'Extended Range 5G' by the end of 2022
90% of Americans with faster 300Mbps-400Mbps 5G network by the end of 2023
In a nutshell, T-Mobile is expected to keep its 5G coverage and speed advantage this year. While Verizon and AT&T have scooped larger amounts of new C-band spectrum at the FCC auction, those won't be deployed en masse until later in 2021 or next year, plus the Un-carrier doesn't really need them.
The big three mobile carriers just bid $78.2 billion in total on new FCC spectrum, yet even after the auction T-Mobile’s mid-band spectrum remains top dog with 301 MHz in total, followed by 167 MHz for AT&T, and 192 MHz for Verizon.
T-Mobile said at its virtual investor conference that 97%t of Americans will have 5G access by the end of next year. What it mentioned, however, is that this coverage will be of the slow low-band variety that doesn't give tangible speed benefits compared to 4G service. It won't be before the end of 2023 that it will blanket 90% of Americans with the faster mid- and high-band Ultra Capacity 5G that now covers about a third of Americans.
Even then, the Americans covered by the 'Ultra Capacity 5G' network will only see an increase in average speeds from 300Mbps up to 400Mbps, or about what Verizon was able to pull off with its new 4G CBRS rollout, so don't worry if your phone doesn't sport a flashy new 5G icon just yet.
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T-Mobile's faster 5G network will cover 90% of Americans by the end of 2023
T-Mobile's 5-year 5G network plan
Maintaining 5G leadership in the 5G era
Recent C band investment further positions T-Mobile’s superiority for 5G era.
Already delivering 5G across more geographic coverage than AT&T and Verizon combined.
Only operator to have deployed dedicated mid-band spectrum for 5G.
Significantly expanding addressable markets
T-Mobile’s superior 5G network to unlock growth opportunities in new markets, deepen relationships with customers and take the competition to cable.
Plans to increase share of smaller markets and rural areas to nearly 20% in next 5 years.
Expect to double market share in enterprise in next 5 years.
Bring competition to the $90 billion broadband market, targeting 7-8 million customers in 5 years.
Unlocking bigger merger synergies, faster
Expect total net present value of merger synergies to be more than $70 billion – up more than 60% from original merger guidance of $43 billion.
Expect total run rate cost synergies to reach ~$7.5 billion per year by 2024 – up 25% from original merger guidance of $6 billion per year.
Delivering better financial results
Raising mid-term and long-term guidance across the board w/ higher service revenue, Core Adjusted EBITDA and free cash flow.
Potentially up to $60 billion in shareholder return between 2023-2025.
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Daniel, a devoted tech writer at PhoneArena since 2010, has been engrossed in mobile technology since the Windows Mobile era. His expertise spans mobile hardware, software, and carrier networks, and he's keenly interested in the future of digital health, car connectivity, and 5G. Beyond his professional pursuits, Daniel finds balance in travel, reading, and exploring new tech innovations, while contemplating the ethical and privacy implications of our digital future.
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