NEW YORK-T-Mobile USA Inc.’s parent company T-Mobile International said it planned to bolster its U.S. operations through the acquisition of smaller U.S. operators and participation in upcoming spectrum auctions.
T-Mobile International recently quashed rumors that it was looking to sell its rapidly growing U.S. subsidiary, and has reportedly set aside several billion dollars to fund expansion plans. Analysts expect T-Mobile USA to be very aggressive in the upcoming auction of so-called 3G spectrum set for next summer in an attempt to strengthen the carrier’s modest spectrum position, which today is preventing T-Mobile USA from launching next-generation services.
T-Mobile USA also has been linked with the possible rollup of regional GSM operators that have been struggling to add subscribers in an increasingly competitive environment. Those regional operators include Dobson Communications Corp., SunCom Wireless Inc. and Centennial Communications Corp.
“It’s just a question of mathematics to figure out this, but it will be a combination of both,” said Thomas Winkler, T-Mobile International’s chief financial officer, at the UBS Warburg Global Communications Conference.
The regional acquisitions would help T-Mobile USA expand its footprint geographically, with Dobson possessing a strong network in the Midwest, South and Alaska; SunCom strong in the Southeast and Puerto Rico; and Centennial offering service in the upper Midwest and South.
The spectrum auctions would boost the carrier’s spectrum position in larger markets, where it lacks enough capacity to launch UMTS services. T-Mobile USA is the industry’s fourth-largest operator, though it has less than half the subscribers of its three larger competitors.