T-Mobile US has asked FCC to transfer spectrum licenses from Sprint
Deutsche Telekom and SoftBank, respectively the majority owners of T-Mobile US and Sprint, have begun what the U.S. Federal Communications Commission refers to as a “pleading cycle” related to the transfer of spectrum licenses and leases from Sprint to T-Mo, as well as some items related to the foreign ownership of the combined company.
By way of a timeline, petitions to deny the deal are due into the FCC by Aug. 27, oppositions are due Sept. 17, and replies are due Oct. 9.
The two carriers announced the proposed merger framework in late April. The deal values Sprint at $59 billion and has a total transaction value of nearly $150 billion. Collaboration on construction of a nationwide 5G network has been a major talking point from corporate executives at both firms. The two carriers have complementary spectrum holdings in the low-band (T-Mo’s 600 MHz) and mid-band (Sprint’s 2.5 GHz).
According to FCC documentation, Deutsche Telekom would control 42% of T-Mobile common stock and SoftBank would hold 27%; public shareholders would hold around 31% of common stock. “Deutsche Telekom would retain de facto control of the combined company…because it would have the right to designate a majority of the members of the board of directors and because its planned agreement with SoftBank would grant it the right to direct the voting of SoftBank’s New T-Mobile shares.”
Back to the 5G opportunities the combined carrier would have, executives have said the new company would invest $40 billion into its network over the next three years. The combined network will be “anchored on the T-Mobile network,” according to T-Mo COO Mike Sievert, who will serve as COO and president of the combined company. It will have an estimated 85,000 macro cell sites and about 50,000 small cells.
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