Verizon and T-Mobile are touting the impact of their C-band auction spectrum positions, though using different arguments.
Verizon says it more than doubled its existing mid-band spectrum holdings and grew its sub-6-GHz holdings 120 percent, spending close to $53 billion.
T-Mobile, on the other hand, touts having invested just over $9.3 billion in C-band licenses, as it already possesses lots of other mid-band spectrum in the 2.5-GHz bands.
The different messages flow from different strategic perspectives. Verizon had been in greatest need of additional spectrum, while T-Mobile had plenty.
Both Verizon and T-Mobile have said they will use new and existing spectrum to introduce new home broadband services that compete with cable operators and other internet service providers. By the end of 2021, Verizon expects to cover nearly 15 million homes with its home broadband product, and by the end of 2023, 30 million homes, using both 4G and 5G networks.
T-Mobile’s service presently offers speeds of about 50 Mbps for $60 a month, using the autopay feature.
Verizon’s 5G Home internet now offers download speeds up to 1 Gbps in 18 markets, with one to two million households expected to be covered by the millimeter wave network by the end fo 2021.
Verizon expects to expand coverage to 15 million locations with LTE Home (using 4G) and the C-band spectrum. Verizon has not yet said what it aims for, as far as speed.
Verizon says it gained an average of 161 MHz of C-band assets nationwide, winning between 140 and 200 megahertz of C-Band spectrum in every available market.
Verizon expects to have new spectrum available to 100 million people in the initial 46 markets within a year. During 2022 and 2023, coverage is expected to increase to more than 175 million people.
By 2024 more than 250 million people are expected to have access to C-band capacity, Verizon says.
The $52.9 billion in spectrum licenses (including incentive payments and clearing costs) will also be matched by capital investment in plant. Verizon expects an additional $10 billion in capital expenditures over the next three years to deploy C-Band as quickly as possible.
Current Verizon capital expenditure guidance of $17.5 billion to $18.5 billion for 2021, with comparable levels through 2023.
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