US operator T‑Mobile has completed a transaction with private investment firm Grain Management for the sale of its 800 MHz spectrum portfolio.
The deal involved T-Mobile handing over its 800 MHz spectrum in exchange for $2.9 billion in cash and all of Grain’s 600 MHz spectrum licenses.
The T-Mobile announcement this week is slim on details, but the agreement in principle was announced in March last year. The release at the time carried a quote from Dirk Mosa, Senior Vice President, Spectrum, Partnerships and Acquisitions for T‑Mobile, saying:
“We are very pleased with the terms we reached with Grain and think the deal represents a great value for both parties. This deal would give T‑Mobile the opportunity to work with key partners like Grain that share our vision to optimize spectrum for consumers by exploring the possibilities of how emerging technologies can support mission-critical infrastructure and communications – something that is integral to fuelling our country’s continued 5G leadership that drives needed economic growth.
“This deal also gives us a great opportunity to deploy Grain’s 600 MHz portfolio of spectrum on T‑Mobile’s network, which is already creating better customer experiences in several markets.”
The deal got the regulatory nod from the Federal Communications Commission on July 1 this year.
Grain Management is a private investment firm that focuses on communications infrastructure and tech companies, and its website boasts it has $12 billion in managed assets, and eleven investment vehicles.
Grain’s own press release on the completion of the deal this week says the acquisition establishes it as “the owner of one of the nation’s largest privately held portfolios of low-band spectrum and advances the firm’s long-standing strategy of investing in communications infrastructure assets that serve critical industries and strengthen US connectivity.”
It describes the 800 MHz Band 26 spectrum as a rare, low-band asset, covering the entire US with approximately 14 MHz of blended spectrum depth nationwide. It points to its propagation characteristics as making it well-suited for private wireless networks for electric utilities and other critical infrastructure operators, enterprise communications, and direct-to-device (D2D) satellite services.
David Grain, Founder and Chief Executive Officer of Grain Management said: “Completing this acquisition reflects our continued conviction in communications infrastructure as an essential driver of economic growth and national resilience. This is a unique national infrastructure asset with significant long-term strategic value. We look forward to working to put this spectrum to productive use in ways that improve connectivity, strengthen critical infrastructure and support continued innovation.
“Closing the transaction marks the beginning of the next phase for this exceptional spectrum asset. Our focus now shifts to responsible stewardship and working with industry participants to unlock its full potential in ways that further strengthen America’s communications infrastructure.”
Grain says it will now begin executing its strategy for the 800 MHz portfolio, which will include engagement with potential commercial partners and “advancing multiple pathways for deployment” in accordance with the framework established by the FCC.
A few weeks ago, rival US operator AT&T completed the acquisition of mobile spectrum from EchoStar in a deal worth $23 billion. The idea is the 30 MHz of 3.45 GHz spectrum and 20 MHz of 600 MHz frequencies will help it to boost the capacity and coverage of its mobile services across the US. It also provides an influx of cash for EchoStar, which is reportedly on the cusp of filing for bankruptcy for another one of its business units.
Source: https://www.telecoms.com/spectrum/t-mobile-completes-sale-of-800-mhz-spectrum
