Company T-Mobile is ahead of its competitors in 5G
Company T-Mobile U.S. Inc. (TMUS) is accelerating the deployment of the 5G network. At the same time, the company is noticeably ahead of competitors, both in terms of construction speed and network capabilities.
T-Mobile gained access to the 5G mid-range after acquiring Sprint in early 2020. has become an important decision for a telecommunications company since it is the mid-frequency range that allows you to fully take advantage of the advantages of a new generation network.
Thus, the high-frequency range provides lightning-fast 5G speed, but it does not extend far from the source and has problems with penetration through walls and other objects. At the same time, the mid-frequency range provides high speed and has no issues with propagation over a distance.
T-Mobile was one of the first in the mid-frequency range. At the same time, its main competitors Verizon and AT&T, have been focused on the high-frequency range for a long time and only recently began projects to deploy networks in the mid-frequency range. At the same time, both companies may have problems obtaining the required frequencies since the U.S. Federal Aviation Administration (FAA) decision concerned that medium frequencies may interfere with the operation of aircraft safety systems.
For this reason, AT&T and Verizon are delaying the rollout of some 5G services, while T-Mobile is rolling out the midrange faster than expected. In addition, the company recently announced that its midrange 5G now covers 200 million people in the U.S., about 80% of T-Mobile’s customer base.
According to management, the mid-frequency range will be available to 300 million people in the next two years. Thus, even if AT&T and Verizon eventually get the correct frequencies, it will be possible to discuss full deployment by 2024. At this time, T-Mobile will already be the market leader, as it will still have much more spectrum of 2.5 GHz and below. So far, competition in the field of 5G is not particularly acute due to the relatively small number of smartphones supporting the network of the new standard.
However, the situation is changing, and attention to the possibilities of 5G has grown even more during the pandemic – high Internet speed has become an essential factor for many organizations. Thus, in the coming year, the availability of a working fifth-generation network will become a severe key advantage of T-Mobile. At the auction on November 19, T mobile stock price $115.62.
