Years of investment supplemented by aggressive promotional activity appears to be paying off for T-Mobile US Inc (NASDAQ:TMUS) which is closing in on Verizon Communications Inc. (NYSE:VZ) in terms of coverage in the U.S. The third largest carrier now boasts of 313 million people on its network a feat that should be of great concern to the big two that have operated a monopoly for years.
5G Technology Push
Even with the milestone achievement, T-Mobile is not yet ready to slow down and enjoy the fruits of its massive investment over the years. Looking into the future appears to be the company’s main objective as it looks to break the status quo at the top.
T-Mobile has already set its eye on the 5G network even though the standard is still in its infancy in terms of development. Setting standards is not something new for the Uncarrier, which is the only one in the U.S currently offering 1Gbps worth of internet speeds on its network. While 5G is not expected to be up and running anytime soon the carrier hopes to be the first one to adopt it on its network come 2020.
“And I’m announcing T-Mobile Extended Range LTE—which works 4x better in buildings and goes 2x farther from the tower—now covers over 250 million people in more than 500 metro areas,” said T-Mobile CTO Neville Ray.
Fast Download Speeds
Providing fast download speed is an area that the company is also paying a close attention to as it looks to steal customers from other carriers. Its LTE network speed currently stands at 24.4Mbps, which it says, is much faster than Verizon’s 24.3 Mbps and AT&T Inc. (NYSE:T)’s 23.9Mbps.
Given that everything is shifting online right from shopping to watching content online, it makes a lot of sense for the company to invest a lot in this area in a bid to maintain an edge over its peers. In a bid to take the fight to the big two, the company says it plans to participate in the upcoming Federal Communications Commission’s 600MHz incentive auction process as it eyes more sub-1 GHz spectrum. There are already reports that the company could spend up to $10 billion on new licenses as it looks to bolster its network.