& cplSiteName &

T-Mobile: Going Bananas for Low-Band

Dan Jones
3/10/2014
50%
50%

T-Mobile is poised to get its hands on 700MHz 4G spectrum from Verizon later this year that it says will enable it to offer better in-building, suburban, and rural coverage over time.

The 700MHz A-Band spectrum that T-Mobile US Inc. bought from Verizon Wireless for $2.4 billion this January was a main topic for executives from the carrier at the Deutsche Bank Media, Internet & Telecom Conference Monday. (See T-Mobile Spends $2.4B on Verizon Spectrum .)

"We're very confident we'll close in Q2... So we can start offering service within the year," said T-Mobile CTO Neville Ray. " 'Fifteen will be a much larger year than 14 but we'll get started in 14."

The 700MHz A-Band spectrum will allow T-Mobile to improve in-building coverage in dense urban areas and add coverage in suburban fringe and rural areas more economically than it could with the AWS (1700/2100MHz) and PCS (1900MHz) spectrum it already holds. "It's not cost effective to build out in these vast geographies with high-band or medium-band," Ray said.

The spectrum covers 70% of T-Mobile's existing customer base and 158 million PoPs. This includes nine out of the top 10 markets and 21 of the top 30 markets, he said.

Just as he told Light Reading in January, Ray has initial markets in mind where the 700MHz service will start towards the end of the year. These include Philadelphia, Dallas, Houston, Miami, and Minneapolis. (See T-Mobile CTO: On the Road to Low-Band.)

The CTO will also try and work around potential interference problems with Channel 51 TV broadcasters in affected areas, such as New York. For instance, Ray said, he can still deploy a network in parts of Long Island even if New York City is out for now and boost that prized "suburban fringe" coverage. (See T-Mobile: Channel-51 Interference a Non-Issue.)

The operator is also hoping to buy more A-Band and get potentially get more low-band 600MHz spectrum in the planned mid-2015 incentive auction from the Federal Communications Commission (FCC) .

T-Mobile made it clear that it considers the auction a milestone for the wireless industry. "There needs to be adequate regulatory protections to ensure the duopolists do not come out with all the spectrum again," T-Mobile CFO Braxton Carter told the conference crowd.

And just like the banana distribution industry, the CFO believes that three major competitors -- not four -- is the magic number for major mobile operators in the US. "It's not a question of if, it's a question of when," Braxton said when asked about the prospects for consolidation in the industry.

"To take a third-scale national player that has the scale benefits with the right business model could be very competitively enhancing," the CFO suggested. There has been talk of a T-Mobile-Sprint tie-up but the FCC appears to be downbeat about that combination. (See Tough Road Ahead for Sprint/T-Mobile?)

— Dan Jones, Mobile Editor, Light Reading

(15)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Page 1 / 2   >   >>
SachinEE
50%
50%
SachinEE,
User Rank: Light Sabre
3/23/2014 | 4:14:32 AM
Re : T-Mobile: Going Bananas for Low-Band
@ danielcawrey, advertising does play a much bigger role than the technical details of spectrums etc. Regarding your second point, different people have different preferences. Some people prefer speed over cost while others do the opposite. But there are considerable number of people who would like to sacrifice some speed in favor of cost.
SachinEE
50%
50%
SachinEE,
User Rank: Light Sabre
3/20/2014 | 2:53:35 PM
Re : T-Mobile: Going Bananas for Low-Band
@ Dan, you are right, it seems logical. T-Mobile seems to have this understanding very clearly that they can't take on AT & T or Verizon alone. If they try to do so it will leave the equation like two big and two medium or small fish. They would rather like to be counted as third big fish even if it comes as a result of partnership with some other carrier.
danielcawrey
50%
50%
danielcawrey,
User Rank: Light Sabre
3/11/2014 | 1:35:56 PM
Re: "Yes, we have no bananas."
It's hard to believe that on the marketing side of things. Consumers don't care where the spectrum comes from. All they see is the advertising. T-Mobile has wowed more people in that way - also by being different.

You would also be surprised at the number of people who would take the reduced cost of T-Mobile over faster data. Not everyone will do that, but many will. 
DHagar
50%
50%
DHagar,
User Rank: Light Sabre
3/11/2014 | 12:48:08 PM
T-Mobile: Going Bananas for Low-Band
@Sarah, I am thinking mobile markets.  To address your other post as well, I see T-Mobile as playing a "strategic" game in finding a specific niche that they think they can win at.  They will either win or lose - then maybe bananas.  If they really have a clear strategy and can pull it off, I think they can win.

DHagar
DanJones
50%
50%
DanJones,
User Rank: Blogger
3/11/2014 | 11:54:16 AM
Re: It's not about scale
True enough. Although T-Mobile didn't do so badly cutting deals w/ private providers for fiber backhaul once it got HSPA+ going...
spc_isdnip
50%
50%
spc_isdnip,
User Rank: Lightning
3/11/2014 | 11:51:52 AM
It's not about scale
T-Mobile and Sprint are disadvantaged because they don't own the backhaul wires; AT&T and VZ do, and scratch each others' backs to the disadvantage of the smaller players.  Nothing but regulated special access (writ large, revoking forbearance from Carrier Ethernet) pricing can fix that.

A 3-carrier market screws MVNOs badly.  The big two players sell direct.  Players 3 and 4 accept wholesale.  A 3-carrier market makes #3 bigger and less interested in wholesale, with no competition for it.  The market thus loses all of the innovation that comes from MVNOs.  Bad for consumers, though a modest ain for shareholders.  Of course we know who controls Washington.
DanJones
50%
50%
DanJones,
User Rank: Blogger
3/11/2014 | 11:06:31 AM
Re: "Yes, we have no bananas."
I'm not convinced that T-Mobile expect a merger to happen any time soon. "Sooner or later" is proably the important element to Braxton's words.

They can *probably* afford to play a slightly longer game and see what happens when the next changing of the guard happens at the FCC.
Sarah Thomas
50%
50%
Sarah Thomas,
User Rank: Blogger
3/11/2014 | 11:03:30 AM
Re: T-Mobile: Going Bananas for Low-Band
hmm okay. Are you talking about the mobile market or banana market?
Sarah Thomas
50%
50%
Sarah Thomas,
User Rank: Blogger
3/11/2014 | 11:02:29 AM
Re: "Yes, we have no bananas."
T-Mobile has also always assumed it will be their brand that takes hold, not Sprint's, although that's probably fair given the success the Uncarrier strategy has had relative to Sprint's struggling band. But, is Sprint too big and well entrenched to be treated as a pile of spectrum, as T-Mo once said?
DHagar
50%
50%
DHagar,
User Rank: Light Sabre
3/10/2014 | 9:43:35 PM
T-Mobile: Going Bananas for Low-Band
@Dan, sounds like a smart move with a well thought-out business model.  Someone focused on filling the gaps and creating a good package designed for the right markets may just have the right combination.

DHagar
Page 1 / 2   >   >>
From The Founder
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Interviews
Heavy Reading: The Web-Scale View

1|18|17   |     |   (0) comments


At Light Reading's 2020 Vision Executive Summit in Rome, Heavy Reading's former chief analyst Patrick Donegan shared insight from the recent web-scale operators report, which featured research on how web-scale operators view the market, the best web-scale companies to ...
LRTV Custom TV
Cisco's Cloud Scale Networking: Automation, Virtualization & Simplification

1|18|17   |     |   (0) comments


Cisco's Sanjeev Mervana outlines the latest innovations in networking technology at CES 2017 in Las Vegas.
LRTV Custom TV
ADVA Talks Innovation & the Future of Networking

1|17|17   |     |   (0) comments


Ray Le Maistre and Christoph Glingener, CTO of ADVA Optical Networking, discuss the current state of the industry, cooperation and collaboration, open innovation and the future of networking.
LRTV Custom TV
Cisco's Infinite Video Platform

1|17|17   |     |   (0) comments


Cisco's Infinite Video Platform allows service providers to deliver broadcast-quality video over IP networks. Infinite video supports many devices, from 4K TVs to tablets to game consoles. Join Cisco's Rajeev Raman for a brief tour and live demo.
LRTV Interviews
Masergy: Ability to Adapt Key for NFV

1|16|17   |   6:40   |   (0) comments


Speaking at Light Reading's 2020 Vision in Rome, Masergy's VP, Global Technology, Ray Watson, said agility is key to providing the mix and match NFV-based services that are driving business for the managed service provider today.
LRTV Interviews
Equinix: The Data Explosion

1|13|17   |   4:16   |   (0) comments


At Light Reading's 2020 Vision in Rome, Eric Schwartz, president of EMEA, Equinix, talked about how Equinix is helping its customers manage the influx of data today, and how it's preparing for a future filled with millions of connected IoT devices.
LRTV Interviews
Heavy Reading: The Changing Data Center Landscape

1|12|17   |   6:05   |   (1) comment


At Light Reading's 2020 Vision event in Rome, Heavy Reading's Senior Analyst Roz Roseboro talks about how virtualization is impacting data center evolution and how that evolution is affecting the relationship between service providers, data center operators and public cloud providers.
LRTV Interviews
Boingo: Prepping for Millions of Devices

1|12|17   |   5:07   |   (1) comment


At Light Reading's 2020 Vision in Rome, Boingo's CTO Derek Peterson discusses how wireless operators will address the needs of low-bandwidth and high-bandwidth apps at the same time, the need for more MHz, the impact of IoT and more.
LRTV Interviews
Comcast Shows Off Gig Gateway at CES

1|11|17   |     |   (1) comment


With its largest presence at CES in years, Comcast took the wraps off its long-awaited gigabit gateway and a new platform for managing the home WiFi network. Light Reading Senior Editor Mari Silbey sat down with EVP Chris Satchell to discuss the latest Comcast advance, and met with VP of Product Strategy and Development Andrea Peiro to walk through a demo of the ...
LRTV Interviews
Colt: End-to-End Key for 2017

1|10|17   |   6:21   |   (0) comments


At Light Reading's 2020 Vision Executive Summit in Rome, Nico Fischbach of Colt said having a multi-carrier, end-to-end service proposition is going to be key for 2017 -- and SD-WAN is instrumental in making it happen.
From the Founder
Cisco's Clemson on Mobile Cloud Video

1|9|17   |     |   (1) comment


Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators. "If you think about where we're going… whether it's a mobile application, or a video ...
LRTV Custom TV
VMware Telco NFV Solutions – Preparing for 5G & IOT

1|9|17   |     |   (0) comments


Shekar Ayyar, EVP & Corporate Strategy/General Manager of Telco for VMware, discusses VMware's Telco NFV solutions role and foundation for the Imminent Arrival of 5G & IOT.
Upcoming Live Events
March 21-22, 2017, The Curtis Hotel, Denver, CO
May 15-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
A Women in Comms Glossary
Sarah Thomas, Director, Women in Comms, 1/18/2017
Next Plugfest Gets G.fast Closer to Market
Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 1/13/2017
TV's Paradox: No HDR Without 4K
Mari Silbey, Senior Editor, Cable/Video, 1/17/2017
Nokia CTO: 2017 Is the Year 5G Gets in the Field
Dan Jones, Mobile Editor, 1/19/2017
Cable Has One Thing Verizon Needs
Mari Silbey, Senior Editor, Cable/Video, 1/17/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading founder and CEO Steve Saunders chats with Sportlogiq CEO Craig Buntin about sports data analysis.
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
Animals with Phones
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.