AT&T nonetheless has cash left permitting it to enhance its 5G protection within the U.S.

May 24, 2025

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In line with the tea leaf readers (AKA analysts) working for New Avenue Analysis, AT&T nonetheless has some cash left within the financial institution after the $5.75 billion deal to purchase shopper fiber agency Lumen Applied sciences. The deal was introduced Wednesday and on Friday, New Avenue Analysis mentioned that the aforementioned transaction is not anticipated to cease the nation’s third largest wi-fi provider from shopping for extra mid-band 3.45GHz spectrum for its 5G wi-fi service.

How AT&T and Verizon guess on the fallacious spectrum to construct out their 5G networks a number of years in the past

We frequently move alongside the story about how T-Cell turned the 5G chief within the U.S. AT&T and Verizon began constructing out their 5G networks utilizing its quickest airwaves, millimeter wave (mmWave), which is within the high-band. What AT&T and Verizon did not think about was that as quick as mmWave spectrum is, it travels extraordinarily quick distances which limits the variety of clients in a position to connect with these indicators.

T-Mobile's 5G layer cake shows how T-Mobile built its 5G network hreavily depending on mid-band spectrum.

T-Cell’s 5G layer cake which helped it take the early 4G lead within the States. | Picture credit-T-Cell

In the meantime, T-Cell had a unique concept. Utilizing the two.5GHz mid-band spectrum it picked up from Dash within the $26 billion acquisition of its rival, T-Cell proved that utilizing mid-band was the best way to construct a 5G community within the U.S. Not as quick as mmWave, mid-band remains to be sooner than low-band. Whereas mid-band indicators do not journey so far as low-band, they do journey longer distances than mmWave. T-Cell rode its Goldilocks mid-band spectrum to develop into the early 5G chief within the U.S., a place it nonetheless has to today.

However the story does not finish there. Taking discover of T-Cell‘s success utilizing mid-band airwaves, AT&T and Verizon spent greater than $68 billion to win a number of C-band licenses throughout an FCC public sale. Nonetheless, AT&T has admitted that it critically trails T-Cell and Verizon in mid-band and is utilizing a technique that features utilizing C-band spectrum (3.7GHz-4.2GHz) and three.45GHz mi-band spectrum to catch as much as its rivals.

“Not like legacy spectrum beneath 2.5GHz, mid-band spectrum is neither encumbered by legacy applied sciences nor damaged up into slender, paired slivers incapable of supporting high-speed 5G functions. Not like millimeter wave spectrum, mid-band spectrum is able to supporting wide-area networks protecting city and suburban neighborhoods.

–AT&T

New Avenue says that AT&T has the monetary wherewithal to purchase extra spectrum. A brand new report from Mild Studying says that AT&T is already kicking the tires on the acquisition of $1.2 billion of three.45GHz spectrum from UScellular and SoniqWave. That would depart AT&T with $3 billion out there for added spectrum purchases in line with AT&T. New Avenue’s evaluation places that determine at $7 billion.

AT&T ought to come up with the money for to purchase extra 3.45GHz spectrum

If New Avenue’s forecast of AT&T‘s money is appropriate, the $7 billion would give AT&T sufficient juice to purchase the three.45GHz spectrum that T-Cell offered Columbia Capital final September, and a few AWS-3 licenses that AT&T is predicted to purchase. Nonetheless, it needs to be identified that if AT&T plans on shopping for Columbia Capital’s 3.45GHz holdings, it should promote a part of Lumen’s fiber enterprise to an fairness associate. Such a transfer was already baked into the AT&T-Lumen deal.

Again in March, AT&T requested a waiver from the FCC permitting it to exceed the regulatory company’s restrict of 40MHz of three.45GHz spectrum {that a} provider can management. The 40MHz restrict expires subsequent January 4th. However as a result of its acquisition of three.45 GHz spectrum holdings from UScellular would put AT&T over the FCC restrict in some markets, AT&T requested for this waiver which has but to be granted. If the waiver isn’t accredited, AT&T might need to scrap or revise its plan to acquire extra 3.45GHz spectrum.

In a current submitting made with the FCC, AT&T disclosed its 3.45GHz holdings and wrote, “Verizon and T-Cell maintain the vast majority of the remaining unpaired mid-band spectrum outdoors the three.45GHz band. As issues at present stand, AT&T‘s most reasonable catch-up alternatives lie within the 3.45GHz spectrum band. Given the dearth of a transparent spectrum pipeline or mid-band spectrum public sale on the horizon, the secondary market represents the one alternative for AT&T to catch up within the near- to mid-term.”