T-Mobile set to enhance 5G network in rural areas with new legislation

The imminent signing of legislationPresident Biden is expected to grant T-Mobile access to more 2.5GHz spectrum in rural areas, enabling the company to strengthen the speed and capacity of its 5G network in these regions. As T-Mobile expands its network capabilities, cable companies providing fixed wireless access (FWA) services, such as Charter and Comcast, may face significant competition.

A recent survey conductedfinancial analysts at TD Cowen revealed that the demand for FWA services remains substantial. Among the 1,000 US broadband customers surveyed in September, 48% indicated they would consider switching to FWA if it offered lower prices and slightly slower speeds compared to their current broadband services. Notably, 66% of DSL customers and 47% of cable customers expressed interest in switching to FWA.

These findings highlight the potential impact of FWA on cable companies, as Evercore financial analysts previously identified it as a factor contributing to expected broadband customer losses for Charter in the fourth quarter. Therefore, T-Mobile’s recent legislative success is undoubtedly a cause for celebration among its leadership.

The 5G Spectrum Authority Licensing Enforcement Act, recently passedthe House, directs the FCC to distribute the spectrum licenses from Auction 108, held in 2022. T-Mobile secured 90% of all licenses sold in the auction, spending $304 million. However, delays in granting the licenses had arisen due to political disputes over the future of the 3.1GHz-3.45GHz spectrum band. Nonetheless, T-Mobile’s perseverance paid off, with Congress passing a new law that compels the FCC to grant the licenses.

The expected release of these licenses will yield immediate benefits for T-Mobile, already having established the necessary infrastructure to utilize the spectrum. This development presents a positive outcome for T-Mobile, yet potentially poses challenges for AT&T and Verizon, while Charter and Comcast may face negative implications due to increased in-home broadband opportunities.

T-Mobile’s CEO, Mike Sievert, stated that the operator’s 2.5GHz midband 5G network now covers 300 million people. By the year’s end, T-Mobile plans to deploy approximately 200MHz of this 2.5GHz spectrum. However, Sievert hinted at the company’s cautious approach to utilizing other midband spectrum holdings, such as C-band and 3.45GHz licenses. T-Mobile intends to deploy these holdings strategically when the need arises, as their current 2.5GHz licenses sufficiently meet their requirements for the time being. OPP Today