The US Telecom Industry—Merger Talks, Oath, and Net Neutrality PART 2 OF 15
Covering the US with the 5G network by 2020
T-Mobile (TMUS) has started talking about how it intends to use the low-band airwaves it is buying from the FCC (Federal Communications Commission). The carrier emerged as the top bidder for the repurposed spectrum being auctioned by the government. It placed an $8.0 billion bid for the spectrum.
T-Mobile has said that it intends to cover the United States (SPY) with the 5G network by 2020, and the low-band spectrum it is acquiring could help it reach that goal. The carrier’s 5G network rollout is expected to begin in 2019. A 5G network is expected to support faster connections than 4G LTE.
Supporting the IoT economy
As billions of devices join the Internet economy for the first time via the IoT (Internet of Things), network demand is poised to surge dramatically. As a result, carriers are investing in next-generation network technologies such as 5G. The IoT installed base is expected to hit 30.0 billion devices by 2020, up from 9.7 billion in 2014, according to the IDC (International Data Corporation).
Streaming online content such as video and music could drive up network demands. T-Mobile is a provider of zero-rated streaming music, which is offered in the US and the Netherlands.
Taking different routes to 5G
T-Mobile’s larger rivals AT&T (T) and Verizon (VZ) are also investing in 5G networks, supported by telecom equipment vendors Ericsson (ERIC) and Nokia (NOK). However, while AT&T and Verizon have prioritized denser urban markets for their 5G networks, suggesting a patched rollout, T-Mobile is seeking nationwide coverage.