T-Mobile US (TMUS) to Acquire 700 MHz Spectrum from AT&T

Shutterstock photo

T-Mobile US Inc. TMUS is gradually expanding its 4G LTE coverage in the U.S. Recently, the company has entered into an agreement with ATT Inc. T to acquire spectrum in the 700 MHz band. This will help the company to provide LTE network in the greater Chicago area. ATT had acquired this license as part of its takeover of Leap Wireless two years ago. Although the financial terms of the T-Mobile US – ATT deal have been kept under wraps, the transaction is likely to be closed in the fourth quarter of 2016.

In 2014, T-Mobile US acquired 700 MHz spectrum from Verizon Communications Inc. VZ in a deal worth multi-billion dollar. Ever since that buy, T-Mobile US has systematically increased its 700 MHz airwaves portfolio through 23 transactions. After the completion of the ATT deal, T-Mobile US will install LTE coverage in the top 10 markets of the U.S.

Notably, in Mar 2016, T-Mobile US sought the telecom regulator Federal Communications Commission’s (FCC) approval for a millimeter wave radio test license using the company’s 28 GHz and 39 GHz frequency bands to conduct a test run of the upcoming 5G wireless standard. The company has formed partnerships with Ericsson AB ERIC and Nokia Corp. NOK to set up field and lab trials for 5G networks. A full-fledged 5G network deployment will not start until 2020.

The U.S. telecom industry has lately emerged as an intensely contested space where success thrives largely on technical superiority, quality of services and scalability. Thus, in order to stay ahead of competition, existing players need to be constantly on their toes to introduce innovative products. At this juncture, we believe T-Mobile US’ decision to expand 4G LTE network and its drive for 5G wireless network will prepare the ground for its future growth. The stock currently carries a Zacks Rank #3 (Hold).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ERICSSON LM ADR (ERIC): Free Stock Analysis Report

NOKIA CP-ADR A (NOK): Free Stock Analysis Report

ATT INC (T): Free Stock Analysis Report

VERIZON COMM (VZ): Free Stock Analysis Report

T-MOBILE US INC (TMUS): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This entry passed through the Full-Text RSS service – if this is your content and you’re reading it on someone else’s site, please read the FAQ at

Leave a Reply

Your email address will not be published. Required fields are marked *

Curated By Logo