News
U.S. mobile operator preparing for this month’s 600-MHz auction.
T-Mobile US on Monday announced it has agreed to sell $2 billion worth of bonds to parent company Deutsche Telekom in order to fund the purchase of low-band spectrum.
The issue and sale of the senior notes will occur by 7 December this year, the U.S. mobile operator revealed in an SEC filing.
Under the terms of the purchase agreement, T-Mobile is required to use the proceeds from the sale for the acquisition of low-band spectrum, the filing stated.
Should it not need the funds for spectrum, the telco may pay down debt, or absent that requirement, for general corporate purchases, it said.
The Federal Communications Commission (FCC) plans to begin its so-called incentive auction later this month, through which it will sell off frequencies in the 600-MHz band that are currently in use by TV broadcasters.
Stage one of the process will see the broadcasters sell their spectrum back to the government, while stage two will enable mobile operators to acquire it for mobile broadband services.
All-in-all, it could well be a lengthy process.
T-Mobile US has registered to take part in the auction, alongside major rivals AT&T and Verizon, and cable giant Comcast. Sprint is missing from the list of participants.
