T-Mobile US Inc (TMUS) Becomes Hurdle For AT&T Inc. (T)


T-Mobile US Inc (NYSE:TMUS) is taking the fight directly to AT&T Inc. (NYSE:T) in its push for more low-band spectrum. The small wireless company has asked the FCC to stop any potential transfer of low-band spectrum to AT&T. T-Mobile on its case argues that AT&T and Verizon Communications Inc. (NYSE:VZ) do not qualify for low band spectrum, as they already control two-thirds of spectrum nationwide.

T-Mobile Concerns

T-Mobile US Inc (NYSE:TMUS) is taking issue with the way AT&T tabled bids for the low band spectrum through a secondary market transaction. AT&T Inc. (NYSE:T) is reportedly considering acquiring more spectrum from East Kentucky Network something that T-Mobile vehemently opposes. T-Mobile had reportedly tried to acquire these licenses but was locked out of talks on AT&T playing the keep away with low-band spectrum card.

There is fear that such transactions could affect the level of competition in the industry. The wireless company fears that further acquisitions would give AT&T rights to the best airwaves for LTE services something that would affect small players in terms of competition. . T-Mobile US Inc (NYSE:TMUS) on its petition alleges that AT&T has failed to prove beyond doubt that its push for more spectrum is in the public interest.

Awaited FCC Ruling

The FCC blocking AT&T Inc. (NYSE:T) low-band spectrum acquisition is expected to give small players a chance to compete for market share. The agency has already set aside a portion of airwaves that T-Mobile, Sprint, and other smaller players will battle it out for.

The FCC is set to make a decision on the T-Mobile US Inc (NYSE:TMUS) request for the setting aside of a larger chunk of licenses for bidding by the small carriers. Verizon and AT&T Inc. (NYSE:T) have already opposed such a move. The two companies argue that the T-Mobile and Sprint Corp (NYSE:S) should no longer be considered as small players as they are well funded by foreign owners.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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