T-Mobile forks over $3.5 billion for more 600 MHz spectrum

T-Mobile informed the Securities and Exchange Commission (SEC) that it is buying additional 600 MHz spectrum from Channel 51 License and LB License for a total cost of $3.5 billion. About $1.9 billion will be paid to 51 License, and about $1.6 billion will be paid to LB License. The licenses range from 10 MHz to 30 MHz per market and cover over 108 million points-of-presence, or about one-third of the US population. The licenses are already being used by T-Mobile through exclusive leasing arrangements with the sellers. These leasing arrangements were entered into in 2020 during the early days of the COVID-19 crisis when the big wireless carriers borrowed spectrum temporarily to increase their capacity. But after a few months of borrowing, T-Mobile entered into a three-year arrangement with LB License and Channel 51 — companies controlled by the venture capital firm Columbia Capital — for 600 MHz paid leasing arrangements.