T-Mobile US Inc (NASDAQ:TMUS) looks to acquire Airwaves from Comcast Corp (NASDAQ:CMCSA) in a cash deal worth $1.2 billion – $3.3 billion, with plans to close the purchase by 2028 pending approval from the U.S. Federal Communications Commission (FCC).
The move will bolster the second-largest U.S. wireless carrier’s network capabilities, especially in New York City, Orlando, and Kansas City.
The low-band 600-megahertz spectrum can cover larger areas and penetrate walls and windows more effectively than higher frequencies, Bloomberg reports.
Also this week, the leading telecom company agreed to raise $2 billion via senior note offering.
The acquisition will enable T-Mobile to exercise greater control over network quality and incorporate crucial long-range frequencies.
It’s part of T-Mobile’s broader strategy to secure additional spectrum licenses, with a pending $3.5 billion acquisition of 600-megahertz licenses from Columbia Capital covering cities such as San Francisco, Atlanta, Chicago, Los Angeles, and Boston.
However, this deal has also faced regulatory scrutiny, with Dish Network Corp (NASDAQ: DISH) filing a complaint with the FCC, arguing that it would grant T-Mobile an unfair share of airwaves.
On the other hand, Comcast has decided to divest its 600-megahertz airwaves as it primarily uses mid-band spectrum CBRS.
In August, T-Mobile disclosed plans to downsize its workforce by just under 7% or 5,000 positions.
In July, T-Mobile US reported second-quarter revenue of $19.2 billion, a decline of 2.6% year-on-year, missing the consensus of $19.3 billion. EPS of $1.86 beat the consensus of $1.69.
Price Action: TMUS shares traded lower by 0.79% at $139.00 premarket on the last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
