T-Mobile will be selling its 800 MHz spectrum portfolio to Grain Management, LLC, a leading private investment firm focused on digital infrastructure and solutions to the global broadband industry, the carrier announced yesterday.
The two announced an agreement in principle, though terms of the proposed deal didn’t specify on monetary amount, just that T-Mobile will receive a combination of cash and all of Grain’s 600 MHz spectrum licenses.
The 600 Mhz and 800 Mhz bands are considered low-band spectrum, meaning they provide greater range and the ability to penetrate objects, but at lower speeds in comparison with mid-band or high-band spectrum.
Initially the industry expected to deploy 5G in higher-band spectrum to maximize speed but T-Mobile challenged that thinking by deploying 5G in the 600 MHz band, which enabled the company to quickly offer 5G over a large geographic area, albeit with not much of a speed boost over 4G. The company subsequently deployed 5G using mid-band spectrum and received a speed boost.
According to the T-Mobile announcement, Grain will work with Black & Veatch to market the portfolio to utilities, other critical infrastructure industry operators, rural and regional operators, and other enterprises.
The deal is expected to be finalized by the end of April 2025 and will be subject to regulatory approvals. Closing of the proposed transaction will occur at a later date after all required regulatory approvals have been received and other closing conditions satisfied.
“We are very pleased with the terms we reached with Grain and think the deal represents a great value for both parties,” Dirk Mosa, T-Mobile senior vice president, spectrum, partnerships and acquisitions, said in the announcement.
“This deal would give T-Mobile the opportunity to work with key partners like Grain that share our vision to optimize spectrum for consumers by exploring the possibilities of how emerging technologies can support mission-critical infrastructure and communications — something that is integral to fueling our country’s continued 5G leadership that drives needed economic growth.”
