If you open the PDF document attached to the article it says “only PCS spectrum is being leased” in the first paragraph.
The article has the agreement posted in it showing the spectrum and locations being swapped.
The spectrum getting swapped is not worth $533M to lease. Something else is going on with the leases.
While some are know it alls. Everyone else that say this though the same thing, that the were going to start using some of each other's spectrum. If it just a swap why write a article like that and call it a lease?
If it just a swap why write a article like that and call it a lease?
Carriers do short term leases to coordinate a swap over after a formal deal on paper is done. Carrier A and Carrier B formally swaps spectrum on paper then do a short term lease each other back the spectrum so both carriers can continue to use the spectrum they individually held. Then at some point and time in the future, a coordinated handover occurs where the leases end and immediate ownership is taken as per the formalized swap agreement.
A Carrier Spectrum 1900-1910 MHz, B carrier 1930-1940 MHz.
Formal Swap so A carrier has B carriers spectrum and Vice Versa.
Formal short term lease so A carrier and B carrier will still have usage and temporary ownership of the spectrum that was agreed upon to swap.
Set Date: Short Term lease concludes -- spectrum coordinated in handover at X time on X day.
B carrier owns 1930-1940 MHz and A carrier owns 1900-1910 MHz.
This is what occurs in spectrum swaps.
There are further spectrum swaps that are pending the FCC that are not yet formalized yet including major markets such as Dallas, TX and New Orleans, LA.
I’m sure T-Mobile is betting on it being theirs soon anyway. I think this is just a Plan B.
All I am saying is that the $553M is rather large for the locations in your table. Particularly for short term leases. Now if that includes NYC and Dallas and other major cities, then the narrative changes.
Hopefully we’ll see some PCS spectrum swapping between T-Mobile and Sprint in other major markets.