Deutsch Telekom is very up front about that fact that it is the AWS spectrum it received after the unsuccessful acquisition by AT&T that will allow them to being deploying Long Term Evolution, which has been widely accepted as the standard for next generation wireless networks around the world. They explain that “the spectrum gained through the breakup fee empowers T-Mobile USA to start LTE-based services in key US markets.”
It makes perfect sense that the spectrum from the breakup fee is more important that the $3 billion in cash they received, as analysts calculated that the money would only allow them to cover operating expenses for 12 to 24 months, and that a different solution would need to be found.
It now becomes apparent the Deustch Telekom was protecting its own interests in urging the FCC to block the Verizon Wireless AWS spectrum purchases from the cable consortium. If so much AWS spectrum is controlled by Verizon, T-Mobile USA will have a very difficult time accumulating what it will need to build out its LTE network into new markets once launched.
I would really like to see T-Mobile get access to some of the AWS spectrum stockpiled by the cable companies. I think it can only do the consumer and the entire US wireless market good to allow a fourth carrier to come in and be competitive with Verizon, AT&T and Sprint, as more consumer choice forces the carriers to be more innovative and try to compete on price coupled with quality of service.
Source: BusinessWire
Via: AllThingsD
