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T-Mobile and Sprint Enters Long-Term Lease Agreement on Sharing Spectrums

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T-Mobile and Sprint's proposed merger seems to be close to getting approved. However, the two companies are not counting on this to enhance their networks.

One evidence for this is a recent agreement signed by the two wireless providers that indicates both will be sharing radio frequency spectrum components.

The development was first reported by TmoNews. According to the report, an acknowledgement of the agreement between both parties is documented on page 23rd of T-Mobile's extensive Q4 2018 quarterly report. The agreement is included under the list of spectrum license transactions made by T-Mobile within the year.

The document shows that the two companies agreed on a "reciprocal long-term lease" allowing both companies to "use a portion of spectrum owned by the other party."

It's important to note that both companies have varying frequencies. With the proposed merger, however, the combination of these two spectrums seem to be a huge advantage for the two companies. As a result of the frequency coverage, customers are able to enjoy better service. And even if the merger won't get an approval, it would be a great move for the two providers to help each other out.

In its quarterly report, T-Mobile iterates that the "executory agreement does not qualify as an acquisition of spectrum licenses, and we have not capitalized amounts related to the lease. The reciprocal long-term lease is a distinct transaction from the Merger."

One important thing to know about the lease is that both companies have agreed to make a payment of $533 million throughout the duration of the lease. With that amount, both carriers won't be able to get a profit. But there's no word on how long the shared spectrum agreement will be in effect. There is an emphasis on it being a long-term deal.

The report shows that the agreement was signed in September and that payments start in the last quarter of the year. This means that the two companies may have already started sharing radio frequency spectrum with each other. In that case, have you noticed an improvement on your wireless service from T-Mobile or Sprint?



Source: TmoNews   

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10 comments:

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  1. The question is, do prepaid customers have access to additional coverage?

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    1. You do realize they make little if any money on prepaid , don't you?

      Delete
  2. See there is no need for a merger to reduce these government sanctioned oligoplies from 4 to 3, just innovation and investment.

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    1. Somebody's not paying attention. The whole point of the merger is to save $6B in operational costs over the next few years to fund a new, nationwide 5G network. And gain the scale needed to get the best deals on phones, network gear and 3rd-party services. So they can effectively compete with the Duopoly.

      Delete
  3. Which phones support both Tmobile's 66 and 71 as well as ALL Sprint's frequencies?

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  4. They still need to merge to compete with AT&T and Verizon, who aren't saddled with the kind of wasteful inefficiencies and redundancy that T-mobile and Sprint will be.

    It's like a three legged race where the two fastest runners are running on their own. That's a farce, not a competition.

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  5. Correct. Sprint is currently doing no-one any good; providing a poor fourth-rate service that only gets as far as it can due to deceptive advertising. They are hoarding a LOT of spectrum resources.

    If Sprint can be looted and its resources used to built T-Mobile into a "third duopoly" member, the competitive situation would be a LOT better than it is now.

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    Replies
    1. Haha. A third duopoly would mean 6 oligopolies.
      Sprint is giving away excellent postpaid service. We saved over $1,000 for the free year and had coverage everywhere we traveled. We only used 10mb of Verizon roaming in a whole year, Extended Coverage was included in our unlimited plan and worked fine every time. All for $7.68/month. I recorded the fastest speeds ever in some spots. Like >130Mbps at my daughter's house. They have used Sprint for 6 years and won't switch unless they are merged.
      At the pay-go end of usage Sprint MVNOs have some of the very best rates with low minimums. Like our Tello backup line.

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    2. You must be happy with your phone being dead most of the time. Even looking at Sprint's own coverage maps, there's no way anyone on this network who travels much can expect much coverage. After all, only 10 out of 50 states have a decent Sprint presence.

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