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T-Mobile Won't Bid for H Block Spectrum

Article Comments  9  

Nov 12, 2013, 12:27 PM   by Eric M. Zeman

T-Mobile today said that it will not participate in the Federal Communications Commission's planned January spectrum auction. T-Mobile was initially thought to be interested in the H Block spectrum that will be made available, but confirmed that it is not going to make any bids for the airwaves. On Monday, T-Mobile announced plans to sell about $2 billion in stock, which it might put toward acquiring more spectrum. T-Mobile has not said what spectrum it might be chasing.

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Nov 12, 2013, 1:15 PM

Bad Move

This would be a bad move on T-Mobile's part. If T-Mobile wants to stick to only urban areas, and remain a lower carrier, fine, but if they want to expand and offer services that really can rival AT&T, and continue to support their growth, they really need lower frequency spectrum. They need better indoor coverage that competitors like AT&T and Verizon both offer. Capacity because they only have a limited amount of PCS and AWS spectrum. Just those two reasons are enough to compel T-Mobile to make a bid, but if they dont, they are in clear danger once Verizon and AT&T buys out that low end spectrum, and further have better services.
H Block is in the PCS band. They don't need PCS spectrum. They are saving for the upcoming 600MHz spectrum license auction.
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