T-Mobile is in discussions with Tilman FiberCo to build out a fiber-optic network, setting the stage for the company to enter the landline broadband business. This would be the biggest bet T-Mobile has made in fiber-optic infrastructure, and put it in competiton with cable providers. A deal would make T-Mobile an anchor tenant in a newly formed infrastructure joint venture between Tillman FiberCo and private equity firm Northleaf Capital Partners. Under the agreement, Tillman—financed by Northleaf—would build out network infrastructure to various neighborhoods and business districts and fil
T-Mobile US is buying Mint Mobile, the budget wireless provider part owned by actor Ryan Reynolds, for as much as $1.35 billion in an effort to bolster its prepaid phone business and reach more lower-income customers. T-Mobile is acquiring Mint’s closely held parent company, Ka’ena Corp., with a combination of 39% cash and 61% stock.
The Federal Communications Commission is investigating whether broadband-service providers exaggerated their level of coverage to authorities preparing to distribute billions of dollars in subsidies. At issue are claims by carriers that they already provide high-speed internet service to rural and other underserved areas where it’s not actually available. The Biden administration is awarding $42.5 billion to increase access in these locations. Areas served and unserved are being marked on a map compiled by the FCC.
Tiny Gerlach, NV, looks like the ideal place to receive some of the $42.5 billion in Broadband Equity, Access, and Deployment (BEAD) funding targeted to provide internet access to underserved areas. There’s just one catch: The town of 161, gateway to the state’s Black Rock Desert, already has broadband access, according to a government map showing that T-Mobile US Inc. provides service there.
AT&T is in discussions to create a joint venture that would invest billions of dollars on fiber-optic network expansion. The company is working with Morgan Stanley to help bring in an infrastructure partner to the venture, which is expected to be valued at $10 billion to $15 billion. AT&T is embarking on its biggest plan yet to pursue broadband customers outside its traditional 21-state local phone territory.
AT&T Chief Executive Officer John Stankey considers the expansion of AT&T’s fiber network part of his strategy to refocus the company around offering greater telecommunications connectivity now that it’s left behind its dream of being a media powerhouse.
Millions of wireless customers are opening recent phone bills to find AT&T and Verizon raised rates on older service plans. Both Verizon, and to a lesser degree T-Mobile US Inc, have also increased monthly fees. While customers aren’t happy about it, they’re not racing for the exits. And that could pay off for the carriers. “[Telecom companies] want to use this inflationary period to reset their pricing models upward,” said Tammy Parker, an analyst with GlobalData.
Verizon will raise prices on its wireless bills for the first time in two years as the largest US wireless carrier grapples with higher costs. Millions of consumers will see a $1.35 increase in administrative charges for each voice line starting in their June 2022 phone bill. And business customers will see a new “economic adjustment charge” beginning June 16, with mobile phone data plans increasing by $2.20 a month and basic service plans going up by 98 cents. Like many businesses, Verizon has been weighing options on how to adjust to inflation pressure.
When Verizon, AT&T, and T-Mobile introduced the first 5G mobile services in the US three years ago, they promised 10-times faster connection speeds that would unlock a new era of technological advancements. Although no one expected doctors to immediately turn their scalpels over to robots, the telecommunications industry has loudly trumpeted an array of business opportunities such as using augmented reality as a way for online shoppers to try on clothes remotely.
A new generation of high-speed radio frequencies is allowing phone companies to grab a larger share of home internet subscriptions from cable TV operators. Of the 3.7 million new broadband customers signed up by the five biggest cable and telephone companies last year, 22 percent went to wireless connections, according to data compiled by Bloomberg. T-Mobile and Verizon grabbed 819,000 subscribers, a significant bite out of the broadband market. Their weapon, new fixed wireless connections to the home using 5G frequencies.