T-mobile USA aquires $98 million in spectrum from NextWave


T-mobile USA purchased over 65% or NextWave Wireless’s most recant sale of AWS Spectrum. Over $150 million of NextWave’s AWS (1700/2100 MHz) spectrum was sold, $98 million of which went to T-mobile U.S.A. while the rest was distributed between Atlantic Wireless, ACS Wireless, and MetroPCS. Back in 2006, T-mobile U.S.A., with the help of Deutsche Telekom, spent roughly $4.2 Billion to purchase AWS Spectrum across the United States. This most recent purchase from NextWave covers Pittsburgh and Sacramento with 20 MHz each, while New Orleans and Little Rock, Arkansas are covered by 10 MHz each.

T-mobile currently has 3G running in New York, and is planning a national launch later this year. T-mobile’s 3G runs on WCDMA IV (1700/2100 MHz) which is what the most recant NextWave purchase of spectrum will be alloted for.

What does this mean for T-mobile Customers?

  • T-mobile Customers need 3G-capable phones to use T-mobile’s upcoming 3G services. This includes the Nokia 3555, Nokia 6263, Samsung T639, Samsung T819 and even more upcoming phones
  • The purchase of more AWS spectrum means that T-mobile likely underestimated the amount of spectrum needed in these areas, or wanted some fall back spectrum if the network gets too busy. This AWS spectrum will be used for high speed data (3G). If more users then expected will be using T-mobile’s 3G, their network will be strained, and speeds will slow.
  • The addition of 20 MHz or 10 MHz works to ensure there is no network congestion or strain
  • Overall, this is most likely good news for those loyal T-mobile customer waiting for 3G. We’re crossing our fingers that T-mobile will put that $4.2 billion + $98 million to good use.

[Via RCR]