Combo of 600 MHz 5G Standalone and 2.5 GHz gives T-Mobile US a “differentiated” value proposition
On the heels of agreeing to spend $3.5 billion to acquire formerly-leased 600 MHz spectrum in 17 partial economic areas, T-Mobile US CFO Peter Osvaldik joined the virtual Oppenheimer 25th Annual Technology, Internet and Communications last week to give an update on how T -Mo’s spectrum holdings, network approach and go-to-market can help it continue to grow long term.
T-Mobile US operates a 5G Standalone network using 600 MHz spectrum–the operator calls this “Extended Range 5G”–alongside a 2.5 GHz network using spectrum that came with the Sprint merger. This mix gives T-Mo wide-area coverage with the low-band and a beneficial blend of coverage and capacity with the mid-band. Osvaldi mentioned that unlike AT&T and Verizon, T-Mo does not rely on Dynamic Spectrum Sharing, a technology that uses the same frequencies to serve 4G and 5G using near-real-time smart scheduling technology.
In terms of continuing to win market share, Osvaldi sketched out that historically T-Mobile was competing on price, not necessarily on network quality. Now, he said, the message of value and network quality is resonating with customers across segments. “We’re translating that 5G leadership into overall network leadership…You’re creating a different opportunity for customers and enterprises and SMB than they’ve had in the past.”
He called out rural parts of the country–where he said 40% of the population lives–as a major growth opportunity that the company didn’t historically compete in. “Now with the network build and where we’re going…and really bringing a differentiated experience to a lot of these smaller markets and rural areas, that’s significant room for us to run there.” Osvaldi said 20% by 2025 is the market share goal.
“The other one,” he continued, “is enterprise and government where, again, we were underpenetrated and you’ve seen us make tremendous inroads…on the strength of the value proposition and the network technology that is differentiated. That’s another run rate for us that others don’t have.”
The CFO also touched on fixed wireless access ambitions. The goal is to use excess network capacity to provide home broadband, effectively competing in a new segment and creating opportunities to bundle customers into home and mobile services.
Big picture, he said, T-Mobile US has transitioned, as a function of its network and spectrum strategy, to continue attracting value-seekers to now attracting “network-seekers,” customers willing to switch to get the best technology regardless of price .
“There’s a lot of opportunities that we have to continue sustained growth that others in the industry don’t have.”
Click here to see Osvaldik’s full session from the Oppenheimer conference.