“Our competitors just spent a combined $80 billion trying to catch up and match us and they fell short,” says T-Mobile CEO Mike Sievert. “We didn’t just leave this auction with the most mid-band spectrum, we left the auction with the best mid-band spectrum. Our two and a half gigahertz spectrum is more than 50 percent better in most use cases and we have more of it than anybody else. It’s going to make us famous for network in the 5G era.”
Mike Sievert, CEO of T-Mobile, says that despite AT&T and Verizon spending $80 billion in the c-band auction trying to catch up and match them, they fell short:
Our Competitors Spent $80 Billion To Catch Up and They Fell Short
What the c-band auction shows is the extraordinary value of what T-Mobile has. Our competitors just spent a combined $80 billion trying to catch up and match us and they fell short. They spent $80 billion dollars and are still falling short. We didn’t just leave this auction with the most mid-band spectrum, we left the auction with the best mid-band spectrum. Our two and a half gigahertz spectrum is more than 50 percent better in most use cases. Yet we have more of it than anybody else. It’s really terrific because we’ve taken it and run ahead by about two years with the best asset base in the industry. It’s going to make us famous for network in the 5G era.
As we sit here today we’re more than a million square miles ahead of AT&T and Verizon on deployment. We have more 5G geographic coverage out there than AT&T and Verizon combined. We’re also adding coverage at a record pace, at a pace no one company in this industry has ever done. We started ramping up this engine two years ago and now it’s running at pace. While our competitors just seized some assets, they didn’t catch up, but they just seized some assets that they’re going to get after, but they’re way behind.
We Will Unlock Massive Cashflow From This Business
Yesterday we announced a business plan where we demonstrated massive cash flow potential from this business with very reasonable assumptions. These are assumptions that don’t require us to catch any unicorns. We just have to go do what we’ve already demonstrated we know how to do and we’ll unlock massive cash flow potential in this business. We have everything we need to deliver that business plan right now.
Last week we announced our Work From Home solution. We just started our rollout of home broadband for business home office workers. That’s across more than 50 million of the US population and it will rapidly expand to nationwide. It’s such an exciting thing. Now, work from home workers no longer have to share the WiFiwith their kids. That’s so important.
They also don’t have to worry about security if they are enterprises, they can get their home office workers a secure connection. Later this month, as we unveiled yesterday, we’ll be announcing our consumer launch plans across a wide swath of this country with rate plans, go to market plans. etc. We’re really excited about what’s ahead in home broadband. From a timing standpoint, we’re way ahead of the other new entrants.
Starlink Is Not A Broadband Competitor
SpaceX Starlink Constellation (and other satellite broadband provider) could be a compliment or a future collaborator. Ultimately, for the core mainstream broadband connection, it’s going to come down to capacity. Those emerging technologies won’t be able to match on capacity but they’ll be really great augments for places that macro networks don’t reach. Capacity will be the game. Nobody has the ability to deliver more capacity to more places than T-Mobile.
That’s just so great. This is a company that used to be a scrappy upstart and now we’re the number two provider but with demonstrably the best asset base in this industry.