Deutsche Telekom willing to shell up to $2 billion for T-Mobile 600MHz bid
The parent company is willing to love its child.
T-Mobile has issued notes to its parent company Deutsche Telekom totaling $2 billion in value and will be repaid by March 15, 2021 with 5.3 percent annual interest. The carrier will purpose the money mainly for use in the 600MHz spectrum auction that’s to happen this month. Money left over can go towards debt service or “general corporate purposes.”
T-Mobile had boasted about a $10 billion war chest in pursuing low-band licenses this year, but it doesn’t think it will need more than $1.5 billion. It has been expanding broad land coverage with its 700MHz towers and wants to continue doing so with the new licenses. It has been aggressive in going after its competing bidders in pointing out spectrum ownership metrics that rank above the limit for access to a special auction for carriers that don’t own as much spectrum.
Deutsche Telekom was reported to have temporarily shelved its efforts to sell T-Mobile last week, ahead of the auction.