T-Mobile and Comcast recently signed a “material definitive agreement” that could have a significant impact on the lives and mobile network experience of Americans. However, the agreement is not expected to close until the first half of 2028.
So, what exactly is T-Mobile buying? Essentially, T-Mobile wants to maintain and strengthen its leading position in the US 5G landscape. To achieve this, the company is willing to spend up to $3.3 billion by 2028.
T-Mobile’s 5G network is composed of three layers. While the top layer is still under development, the middle and bottom layers are crucial for the network’s speed and coverage. T-Mobile has focused on improving and expanding its mid-band 5G service in recent years. Now, the company is turning its attention to the low-band part of the network.
Through the agreement with Comcast, T-Mobile plans to obtain the 600MHz spectrum, which will enhance the low-band component of its network. If approved by the FCC, this could mean improved coverage for over 100 million T-Mobile customers.
The partnership between T-Mobile and Comcast is a two-part deal. T-Mobile will pay anywhere from $1.2 billion to $3.3 billion for spectrum licenses covering approximately 39 million people in markets such as New York, Orlando, and Kansas City.
To reach the $3.3 billion value of the deal, T-Mobile needs access to additional licenses covering around 110 million people in markets including Chicago, San Francisco, Baltimore/Washington D.C., Boston, Miami, and Nashville. However, Comcast has the right to oppose these licenses partially or entirely before the agreement is finalized.
It’s important to note that the markets mentioned for additional licenses are within Comcast’s current footprint, indicating that Comcast has not yet decided whether it wants to build its own mobile network.
In conclusion, while the agreement between T-Mobile and Comcast may seem complicated, it demonstrates T-Mobile’s commitment to continuously improving and expanding its 5G network for both urban and rural areas in the US.
