T-Mobile has always talked about continuously finding ways to improve its wireless coverage and ultimately build a truly nationwide mobile network. Well, its latest move puts the third biggest wireless carrier in the United States closer to achieving that goal. The company has just announced that it had acquired more of the spectrum in the low frequency 700 MegaHertz bands. T-Mobile has plans to take advantage of the spectrum it purchased in the next 12 months or so, specifically stating that it is aiming to provide network coverage for 48 million more mobile users in America.
Among the Big Four wireless carriers in the US, Verizon Wireless and AT&T are widely considered the clear industry leaders, with T-Mobile and Sprint playing catch up. For T-Mobile, improving its current network coverage is a priority, especially because mobile users often cite nationwide coverage as one of the factors that help them decide between choosing a T-Mobile plan or one offered by Verizon or AT&T.
To T-Mobile’s credit, it has done a fair job of not only gaining some ground on the leaders, but even shaking up the whole wireless industry with unprecedented moves. Over the last couple of years, the wireless carrier has offered zero interest smartphone financing options, international data that is free of charge, unlimited video streaming services, and mobile plans that come with no service agreements. But many consider its coverage to be far from the level of Verizon’s or AT&T’s.
The newly acquired low frequency spectrum should help change that, that is if T-Mobile can pull it off. But even these airwaves do not provide the full solution. That is why the wireless carrier is looking to purchase more in the upcoming spectrum auction (courtesy of TV broadcasting companies) to be conducted by the US government this year.
T-Mobile has previously made it known to the public that it will go into the auction with a budget of $10 billion. As more bidders enter into the proceedings, the prices will likely increase, which means that the quantity of spectrum that T-Mobile can purchase may suffer. Still, the wireless carrier remains optimistic about its chances, citing that its experience in previous spectrum auctions would make the difference.
Just this week, T-Mobile revealed that it posted a profit of $297 million for the fourth quarter of 2015, or $0.34 per share, after gaining an additional 2.1 million new subscribers. During the same three month period, the wireless carrier’s customer turnover rate dropped to 1.46 percent for postpaid subscribers, a significant improvement over the 1.74 percent it posted during the same period one year ago.
