T-Mobile to Build $4 Billion High-Speed Mobile Broadband Network

Following the collapse of its acquisition deal with AT&T Inc., T-Mobile USA is now working independently and making plans for growth. The Wall Street Journal reports that the wireless operator is planning a new network strategy. For that, the company will spend about $4 billion to build a new high-speed mobile-broadband network.

According to WSJ reporter Greg Bensinger, as part of its new strategy, T-Mobile USA will roll out the wireless service known as LTE sometime next year. When T-Mobile launches its LTE service next year, it will be at least two years behind Verizon Wireless. In addition, as per the report, the operator also intends to invest another $1.4 billion toward network improvements over the next two years. T-Mobile’s ultimate goal is to offer 4G LTE service in the top 50 U.S. markets.

Media reports indicate that AT&T paid T-Mobile parent Deutsche Telekom AG $4 billion in cash and wireless airwaves, as a condition of walking away from the deal in December, which could be materialized due to regulatory resistance.

The WSJ report quoted Chief Executive Philipp Humm, who said last month that “the carrier had delayed developing a long-term strategy in anticipation of the merger with its larger rival. As a result, T-Mobile will be the last of the major national carriers to introduce 4G LTE.”

Bensinger wrote that on Thursday that T-Mobile had lost 802,000 of the sought-after contract wireless customers in last year's fourth quarter. By comparison, the decline in contract customers was three times more than a year earlier. The operator admitted that not offering Apple’s iPhones was a disadvantage for the company. While rival Sprint Nextel Corp. benefitted by offering the iPhone handset in October, which helped Sprint to make significant gains in contract customers.

As per the report, the Bellevue, Wash.-based company will refurbish the older 2G spectrum for LTE service, as well as the roughly $1 billion in airwaves it received from AT&T. However, the spectrum transfer is awaiting Federal Communications Commission’s (FCC) approval.