T-Mobile Emerged the Big Winner in the FCC's 5G Spectrum Auction

T-Mobile (NASDAQ: TMUS) spent nearly $10 billion on relatively few spectrum licenses in the FCC's C-band spectrum auction that concluded last month. Still, it seems to have accomplished two goals at the auction: It acquired the most strategic licenses for its portfolio and it forced rivals Verizon Communications (NYSE: VZ) and AT&T (NYSE: T) to spend more than anyone anticipated. Verizon pledged $45.5 billion for the mid-band spectrum licenses and AT&T agreed to $23.4 billion in spectrum licensing.

Without getting too deep into the technicalities, T-Mobile's spectrum holdings in the mid-2010s were well-positioned for major metro areas but not as great in rural areas. After merging with Sprint, T-Mobile has the opposite problem: Lots of usable spectrum for its 5G network in rural markets, but big holes in the portfolio in major metro areas with dense populations.

T-Mobile CEO Mike Sievert. Image source: T-Mobile.

Source Fool.com