In exchange for between $1.2 billion and $3.3 billion in cash, T-Mobile US Inc. said it will purchase airwaves from Comcast Corp. The transaction is expected to be completed by 2028, subject to FCC clearance.
T-Mobile stated in a government filing on Tuesday that the 600 MHz low-band spectrum will allow the No. 2 U.S. wireless carrier to expand coverage in certain areas of New York, Orlando, Kansas City, Missouri, and other locations.
Because it has a wider coverage area and is more easily able to travel through objects like walls and windows than higher frequencies, this band of radio waves is particularly advantageous to T-Mobile. T-Mobile’s initial statewide 5G launch also made use of low-band airwaves.
According to John Butler, senior analyst at Bloomberg Intelligence, “T-Mobile’s plan to purchase 10 MHz of Comcast’s 600 MHz spectrum in markets with a population of up to 149 million will give it more control over network quality and add crucial long-range frequencies.”
T-Mobile announced last year that it planned to pay Columbia Capital $3.5 billion for 600 MHz spectrum licenses to cover, among other places, San Francisco, Atlanta, Chicago, Los Angeles, and Boston. FCC permission is still pending for this deal.