T-Mobile US Inc. (NASDAQ: TMUS), the American part of the telecommunications corporation T-Mobile, has accelerated the deployment of 5G networks. Simultaneously, the organisation is well ahead of its competitors in terms of construction pace and network capacity.
Following the acquisition of Sprint in early 2020, T-Mobile obtained access to the 5G mid-band. This was a crucial move for the telecommunications business since the mid-band allows it to fully utilise the next-generation network. As a result, while the high-frequency band delivers 5G speed, it does not go far from the source and has issues penetrating through walls and other obstacles.
The mid-frequency band, on the other hand, offers excellent speed and has no issues with long-distance propagation. T-Mobile was one of the first to install networks in the mid-frequency range, whereas Verizon and AT&T have long focused on the high-frequency area and have just lately begun initiatives to deploy networks in the mid-range.
At the same time, both firms may face difficulties securing the requisite frequencies, as the US Federal Aviation Administration (FAA) has temporarily halted the decision, citing concerns that medium frequencies may interfere with the operation of aeroplane safety equipment. As a result, AT&T and Verizon are delaying the launch of some 5G services, while T-Mobile is launching the midrange service ahead of schedule.
T-Mobile recently claimed that their mid-range 5G service has reached 200 million people in the United States, accounting for around 80% of the company’s customer base. According to management, 300 million individuals will have access to the medium-frequency range in the next two years.
As a result, even if AT&T and Verizon ultimately receive the frequencies they require, complete deployment will be achievable by 2024. T-Mobile will already be the market leader at that time, as it will have far more spectrum in the 2.5 GHz and lower bands.
Due to the tiny number of handsets that support the new standard’s network, competition in the field of 5G hasn’t been very strong thus far. However, the situation is changing, and interest in 5G’s capabilities has increased even more during the epidemic – fast Internet speed has become a vital component for many businesses. As a result, having a functional fifth-generation network will be a significant competitive advantage for T-Mobile in the following year.
T-Mobile US Inc.’s shares fell -1.53 percent to $113.85 in the last trading session.