T-Mobile to spend big on network upgrades to compete with the best in market

T-Mobile USA recently paid $4.2 billion for additional radio spectrum in a recent federal auction. They now plan to spend more on network upgrades to become a more competitive challenger to the existing market leaders in USA.

The company said in a statement that they plan to spend around $2.7 billion on a network upgrade to third-generation. This would let them deliver mobile multimedia services to their customers. Other players in the market already offer these services.

They would be upgrading their networks to a technology called Universal Mobile Telecommunications System, or UMTS. Roger Entner, an Ovum telecom analyst spoke on these plans: “Once you have UMTS, adding another base band for more frequencies is easy. T-Mobile had to take this step. Otherwise, their global strategy would have been in shambles.”

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