More coverage you want?
Well, T-Mobile hears your pain, as the fourth biggest wireless carrier in the United States is set to off 66.15 million shares for almost $2 billion. The idea is for the company to invest the money for grabbing more spectrum. Where is T-Mobile going to find the spectrum it needs? Is unknown at the moment. However most people expect Magenta to be looking to either strike deals with smaller providers like US Cellular or wait for auction sales.
Many analysts suspect that Magenta is gearing up for the LightSquared auction for its spectrum and some broadcasting spectrum that the FCC may auction off later next year.
Naturally, once T-Mobile revealed its plans its stock price started to show a slight decline. It’s not a big deal if shares of Magenta begin to trend down a bit, because investors aren’t seeing the big picture. The bottom line is T-Mobile needs more spectrum if it wants to lure customers away from the big two: Verizon and AT&T.
In order to take away customers, T-Mob needs to improve its network not just in big cities but in smaller, rural areas across the country. It doesn’tneed to worry about folks in Wall Street who don’t understand what its goal is.
Via TmoNews