T-Mobile CFO says spectrum acquisitions worth ‘a few billion dollars’ are coming

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Last year, T-Mobile made news when it dropped $8 billion on 600MHz spectrum in an FCC auction. Now one T-Mo executive says that the carrier will likely spend a few billion more for additional spectrum in the near future.

Speaking at an investor event this week, T-Mobile CFO Braxton Carter said that T-Mo will likely receive a “massive explosion in cash” over the next 7 to 8 years due to the tax reform legislation that was recently passed by the U.S. government. The total could reach $7 billion.

As for what T-Mobile might do with its infusion of cash, Carter said that “There’s going to be a few billion dollars in spectrum acquisitions that are on the horizon.” He added that T-Mobile will “certainly” take part in upcoming government spectrum auctions because there’s not many private transactions available, and he specifically mentioned that T-Mo will be going after 3.5GHz spectrum. That said, Carter cautioned that T-Mo won’t be spending quite like it did in the FCC’s 600MHz auction, explaining that “that was a game changer.”

Carter also said that T-Mobile said that a “return to shareholders is a true reality” when considering what else to do with T-Mo’s cash.

One thing that T-Mo won’t be doing with its cash is buy a media company, with Carter saying that T-Mobile has no interest in owning or developing its own media entity. “Enabling that content to be curated by the consumer is really our approach,” the CFO said.

Spectrum is a hot commodity for carriers, and so it’s no surprise that T-Mobile plans to use it’s upcoming billions to get even more spectrum. Still, it’s good to hear that with 4G LTE network improvements still happening and a 5G rollout coming soon, T-Mobile plans on spending some cash to grow its spectrum portfolio.

Source: FierceWireless

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  • Deadeye37

    I got confused for a moment reading the headline. I thought they were referring to Spectrum (IE Time Warner Cable), which made me think Spectrum is going to be buying something from T-mobile.

    Good to see that T-mobile is pushing ahead to make themselves more competitive. Just keep the prices lower!

    • JG

      Spectrum is a hot commodity for carriers

      Yeah… That’s what I thought when I read that line to… Knew cable cs were looking into getting into the wireless side of things (Comcast launching its Xfinity Mobile, or whatever they’re calling it, with Verizon)… Didn’t realize it went in reverse, wireless carriers trying to buy cable cos,,,

      Though… Might be nice to get Leger & the UnCarrier movement into the cable sphere… Hopefully slow if not stop the price rate increase. Taxes & fees all in…

  • John Doe

    Yes, I am a shareholder…give me money. Please? lol

  • How about increasing employee pay for better employee retention and just happier employees? Not a one time bonus, which is schlock PR move, but an actual wage increase across the board. FYI I am a shareholder also. The tax windfall could be split more than a few ways.

    • mreveryphone

      From what I heard all employees got a pay raise in January I believe.

    • Jason

      Everyone just got a pay increase. And they get annual stock grants.

    • I did not know about that employee pay raise, thanks everyone!

    • arandomperson7

      They should give some to their TPR partners so even indirect employees can benefit

    • TmoRepNLovingIt

      They just gave every retail employee a hefty hourly raise in February. In some cases it was up to a $4 per hour raise (commission is separate.) Also, like someone else mentioned, they give free stock grants to all employees annually as well. The benefits are also top notch. Trust me, T-Mobile is not lacking in the employee compensation and satisfaction area. I have been with the company for over 5 years now, and it just keeps getting better and better! Also, turnover is very low. I would say about 70% of the people i started with in 2012 are still with the company today, and this is in the RETAIL side. I honestly cant fathom being any happier with an employer than i am with TMUS. I cant speak for TPR though. Those are obviously separate, individual companies. I hear the corporate MetroPCS employees are also taken care of too. T-Mobile literally changed my life!

  • Nice!!

  • the martian ambassador

    Glad that they are not going to buy a media company. Better to spend that money improving the network. Most customers recoil at forced bundling of services, let them choose which streaming services they want on their own.