Feeds

T-Mobile US to raise nearly $2bn in share sale to splurge on spectrum

Mobile firm looks ahead to future government auctions

High performance access to file storage

T-Mobile US has announced it will be selling off a bunch of new stocks to bring in nearly $2bn to spend on spectrum.

America's fourth largest mobile service provider said it would offer 66.15m common shares and use the proceeds for a whole bunch of vague corporate stuff and for "opportunistically acquiring additional spectrum".

T-Mobile's owner, Deutsche Telekom, was quick to confirm on Twitter that it was "very much committed" to the company. It said it wasn't selling its own shares, but its 74 per cent stake in the firm would be diluted down to 67 per cent by the public offering.

Investors appear to be uneasy about the move, with shares in T-Mobile dipping by three per cent in after-market trading after it announced the sale. If shares stay around the closing price of $26.97, the company stands to make $1.96bn from the new offering.

The next government spectrum auction is expected in January next year, when the spectrum assets of bankrupt telco LightSquared will be sold off. After that, an auction of spectrum licences currently owned by broadcasters is due some time next year or potentially in 2015.

Satellite TV company Dish Network is the only firm that has publicly said it's interested in scooping up LightSquared's spectrum, but mobile firms like T-Mobile, Sprint, AT&T and Verizon may still get involved in the auction. ®

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.