T-Mobile Finalizing Sale of 800 MHz Spectrum Portfolio to Leading Private Investment Firm Grain
T-Mobile (TMUS) has announced an agreement to sell its 800 MHz spectrum portfolio to Grain Management, , a private investment firm specializing in digital infrastructure. The deal structure includes T-Mobile receiving a combination of cash and all of Grain's 600 MHz spectrum licenses in return.
Grain, partnering with Black & Veatch, plans to market the 800 MHz spectrum to utilities, critical infrastructure operators, rural operators, and enterprises. The transaction aims to enhance critical network infrastructures nationwide, improving resilience, security, and efficiency.
The deal is anticipated to close by end of April 2025, subject to regulatory approvals. The proceeds will provide additional value beyond T-Mobile's capital envelope outlined during their September 2024 Capital Markets Day. TAP Advisors served as T-Mobile's financial advisor for this transaction.
T-Mobile (TMUS) ha annunciato un accordo per vendere il suo portafoglio di spettro a 800 MHz a Grain Management, una società di investimento privata specializzata in infrastrutture digitali. La struttura dell'accordo prevede che T-Mobile riceva una combinazione di contante e tutte le licenze di spettro a 600 MHz di Grain in cambio.
Grain, in collaborazione con Black & Veatch, prevede di commercializzare lo spettro a 800 MHz a servizi pubblici, operatori di infrastrutture critiche, operatori rurali e imprese. La transazione mira a migliorare le infrastrutture di rete critiche a livello nazionale, aumentando la resilienza, la sicurezza e l'efficienza.
Si prevede che l'accordo si chiuda entro la fine di aprile 2025, soggetto ad approvazioni normative. I proventi forniranno un valore aggiuntivo oltre il budget di capitale di T-Mobile delineato durante il loro Capital Markets Day di settembre 2024. TAP Advisors ha svolto il ruolo di consulente finanziario per T-Mobile in questa transazione.
T-Mobile (TMUS) ha anunciado un acuerdo para vender su cartera de espectro de 800 MHz a Grain Management, una firma de inversión privada especializada en infraestructura digital. La estructura del acuerdo incluye que T-Mobile reciba una combinación de efectivo y todas las licencias de espectro de 600 MHz de Grain a cambio.
Grain, en asociación con Black & Veatch, planea comercializar el espectro de 800 MHz a servicios públicos, operadores de infraestructura crítica, operadores rurales y empresas. La transacción tiene como objetivo mejorar las infraestructuras de red críticas en todo el país, mejorando la resiliencia, la seguridad y la eficiencia.
Se anticipa que el acuerdo se cierre para finales de abril de 2025, sujeto a aprobaciones regulatorias. Los ingresos proporcionarán un valor adicional más allá del presupuesto de capital de T-Mobile delineado durante su Capital Markets Day de septiembre de 2024. TAP Advisors actuó como asesor financiero de T-Mobile para esta transacción.
T-Mobile (TMUS)는 디지털 인프라에 특화된 사모 투자 회사인 Grain Management에 800 MHz 스펙트럼 포트폴리오를 판매하기로 합의했다고 발표했습니다. 거래 구조에는 T-Mobile이 현금과 Grain의 600 MHz 스펙트럼 라이센스를 모두 받는 것이 포함됩니다.
Grain은 Black & Veatch와 협력하여 800 MHz 스펙트럼을 유틸리티, 중요 인프라 운영자, 농촌 운영자 및 기업에 마케팅할 계획입니다. 이 거래는 전국적으로 중요한 네트워크 인프라를 강화하여 회복력, 보안 및 효율성을 개선하는 것을 목표로 하고 있습니다.
이번 거래는 2025년 4월 말까지 마무리될 것으로 예상되며, 규제 승인을 조건으로 합니다. 수익은 2024년 9월의 자본 시장 데이에서 설명된 T-Mobile의 자본 예산을 넘어서는 추가 가치를 제공할 것입니다. TAP Advisors는 이 거래에 대해 T-Mobile의 재무 고문 역할을 했습니다.
T-Mobile (TMUS) a annoncé un accord pour vendre son portefeuille de spectre de 800 MHz à Grain Management, une société d'investissement privée spécialisée dans les infrastructures numériques. La structure de l'accord prévoit que T-Mobile reçoive une combinaison de liquidités et toutes les licences de spectre de 600 MHz de Grain en retour.
Grain, en partenariat avec Black & Veatch, prévoit de commercialiser le spectre de 800 MHz auprès des services publics, des opérateurs d'infrastructures critiques, des opérateurs ruraux et des entreprises. La transaction vise à améliorer les infrastructures réseau critiques à l'échelle nationale, en renforçant la résilience, la sécurité et l'efficacité.
Il est prévu que l'accord soit finalisé d'ici la fin avril 2025, sous réserve des approbations réglementaires. Les revenus fourniront une valeur supplémentaire au-delà du budget de capital de T-Mobile présenté lors de leur Capital Markets Day de septembre 2024. TAP Advisors a été le conseiller financier de T-Mobile pour cette transaction.
T-Mobile (TMUS) hat eine Vereinbarung angekündigt, um sein 800-MHz-Spektrumportfolio an Grain Management zu verkaufen, eine private Investmentgesellschaft, die sich auf digitale Infrastruktur spezialisiert hat. Die Struktur des Deals sieht vor, dass T-Mobile eine Kombination aus Bargeld und allen 600-MHz-Spektrum-Lizenzen von Grain im Gegenzug erhält.
Grain plant in Zusammenarbeit mit Black & Veatch, das 800-MHz-Spektrum an Versorgungsunternehmen, Betreiber kritischer Infrastrukturen, ländliche Betreiber und Unternehmen zu vermarkten. Die Transaktion zielt darauf ab, kritische Netzwerk-Infrastrukturen landesweit zu verbessern und die Resilienz, Sicherheit und Effizienz zu steigern.
Der Deal soll bis Ende April 2025 abgeschlossen sein, vorbehaltlich regulatorischer Genehmigungen. Die Erlöse werden einen zusätzlichen Wert über das von T-Mobile während ihres Capital Markets Day im September 2024 umrissene Kapitalbudget hinaus bieten. TAP Advisors fungierte als finanzieller Berater von T-Mobile für diese Transaktion.
- Acquisition of valuable 600 MHz spectrum licenses enhancing network capabilities
- Additional cash proceeds providing incremental value beyond planned capital envelope
- Strategic divestment of non-core spectrum assets
- Long completion timeline extending to April 2025
- Transaction subject to regulatory approval risks
Insights
This spectrum transaction reveals T-Mobile's shrewd approach to managing its spectrum assets. By divesting 800 MHz holdings while acquiring Grain's 600 MHz licenses, T-Mobile is strategically rebalancing its spectrum portfolio to better align with network development priorities. The 600 MHz band offers superior propagation characteristics - providing better coverage in rural areas and stronger building penetration in urban environments - which complements T-Mobile's existing network architecture.
The technical advantages are significant. The 600 MHz spectrum T-Mobile is acquiring typically requires fewer cell sites to cover the same geographic area compared to higher-frequency bands, potentially reducing infrastructure costs while improving coverage reliability. Meanwhile, the 800 MHz spectrum being divested has particularly high value for utilities and critical infrastructure operators who need dedicated, reliable communications channels rather than consumer-focused bandwidth.
This exchange demonstrates T-Mobile's opportunistic approach to spectrum management - redirecting assets toward their highest-value use cases while maintaining technical capabilities that support their consumer-focused business model. The deal structure suggests T-Mobile is executing on its network strategy while extracting additional value from spectrum assets that may have been underutilized within their current deployment plans.
This transaction represents a win-win approach to capital allocation and asset optimization for T-Mobile. By structuring the deal to receive both cash and 600 MHz spectrum licenses, T-Mobile secures immediate financial benefits while maintaining spectrum resources critical for network operations - effectively monetizing underutilized assets without compromising service quality.
The explicit mention that proceeds represent "incremental upside" to the capital envelope outlined during T-Mobile's September 2024 Capital Markets Day signals potential for enhanced shareholder returns beyond previously communicated plans. This suggests the transaction could provide funding for additional share repurchases, debt reduction, or network investments without altering core financial guidance.
For strategic context, this deal follows the industry pattern of carriers optimizing spectrum holdings based on specific business needs rather than accumulating broad portfolios. The involvement of Grain Management, which specializes in digital infrastructure investments, indicates a specialized market for spectrum assets with targeted use cases. By realigning its spectrum holdings while generating cash, T-Mobile demonstrates disciplined asset management while maintaining network competitive advantages - a positive indicator of management effectiveness.
“We are very pleased with the terms we reached with Grain and think the deal represents a great value for both parties. 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,” said Dirk Mosa, Senior Vice President, Spectrum, Partnerships and Acquisitions for T-Mobile. “This deal also gives us a great opportunity to deploy Grain’s 600 MHz portfolio of spectrum on T-Mobile’s network, which is already creating better customer experiences in several markets.”
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 such later date after all required regulatory approvals have been received and other closing conditions satisfied. The proceeds from this transaction represent incremental upside to the total capital envelope outlined during T-Mobile’s Capital Markets Day in September 2024.
Advisors
TAP Advisors served as the financial advisor for T-Mobile.
About T-Mobile US, Inc.
T-Mobile US, Inc. (NASDAQ: TMUS) is America’s supercharged Un-carrier, delivering an advanced 4G LTE and transformative nationwide 5G network that will offer reliable connectivity for all. T-Mobile’s customers benefit from its unmatched combination of value and quality, unwavering obsession with offering them the best possible service experience and undisputable drive for disruption that creates competition and innovation in wireless and beyond. Based in
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Source: T-Mobile US, Inc.
FAQ
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