T-Mobile has reached an agreement with Comcast to acquire some, if not all, of its 600MHz spectrum holdings. In a filing with the Securities Exchange Commission, T-Mobile disclosed that the transaction is valued between $1.2 billion and $3.3 billion, depending on the extent of the spectrum acquisition. The deal is expected to be closed in the first half of 2028.
If the lower end of the valuation is realized, Comcast would sell 600MHz spectrum licenses that cover approximately 39 million people outside its cable footprint, according to LightReading. On the other hand, for the higher valuation, Comcast would sell spectrum licenses covering 110 million people within its cable footprint. It remains unclear whether Comcast will develop its own mobile network for the markets within its cable footprint, which could lead to a reduced spectrum sale to T-Mobile.
This acquisition by T-Mobile would provide a competitive advantage in the home internet market. In its efforts to enhance its 5G coverage quality and reach, T-Mobile has been rapidly acquiring spectrum over the past three years. Despite being outpaced by Verizon, T-Mobile has gained success in attracting customers to its home 5G service.
Neither T-Mobile nor Comcast were available for immediate comment on the deal.
Over the past year, 5G home internet has garnered attention due to its simplified setup process and extensive coverage potential. During the recent Goldman Sachs Communacopia + Technology conference, CEOs from Verizon, T-Mobile, AT&T, and cable companies Comcast and Charter shared their insights on the future of 5G. Answers varied and enthusiasm was tempered.
According to a report by Opensignal in July, T-Mobile demonstrated the best network performance and 5G performance. The report also highlighted T-Mobile’s average download speed of 195.5 Mbps, exceeding other carriers in terms of upload speeds, quality consistency, video experience, live video experience, and gaming experience.
In 2019, T-Mobile stated that its merger with Sprint would allow them to offer 5G as a more affordable and faster home internet option compared to cable. Living up to its promise, the carrier now offers its home internet services at just $30 per month for customers with at least one line on a Go5G Plus account, which also includes a 15-day trial period. Otherwise, the service costs $50 per month. T-Mobile has also introduced new gateways, the Arcadyan TMOG4AR and the Sercomm TMOG4SE, to provide faster internet speeds.
T-Mobile’s home internet package offers average speeds of 100 Mbps, with no equipment rentals or contracts. This speed is sufficient for 4K streaming, internet browsing, and powering smart homes.
Currently, T-Mobile’s strategy appears to be paying off, and whether the deal with Comcast is valued at $1.2 billion or $3.3 billion, it is expected to bode well for the wireless carrier. The future will reveal how other carriers aim to differentiate their own 5G home internet offerings and what lies ahead for the 5G home internet market.
