In order to ensure that their clients have sufficient access to telecommunications facilities, it is important for cellular communications providers to secure sufficient network spectrum. In order to retain their competitive edge in the market, T-Mobile has made a decision to sell more than 66 million common shares of stock in a public offering. Sales of this stock were reported to have started on November 12 of this year.

T-Mobile Plans Large Stock Sale in Order to Purchase Additional Spectrum

A move as important as this would ensure that there is going to be sufficient T-Mobile spectrum available to serve the requirements of what is a continually increasing customer base. It was recently noted by the Wall Street Journal that the closing price of these shares was in the region of $26.97 per share. As a result, this sale could result in a staggering $2 billion in cash being raised that will go towards increasing the available amount of T-Mobile spectrum.

Having additional T-Mobile spectrum on hand would mean that more of the company’s clients would be able to receive better cellular network coverage that spans a larger geographical area than ever before. This would go a long way in helping to reduce the occurrence of dropped phone calls and instances of text messages that do not reach their intended destination. Being able to offer network coverage that is more reliable would also assist the company with gaining additional clientele from other less-reliable network providers.

According to a separate filing, the last recorded New York Stock Exchange (NYSE) sale price on T-Mobile stock was reported to be around $27.68 per share on November 8 this year. The cellular communications and network provider has stated that the funds received from the sale of the abovementioned stock options would go partially towards the purchase of T-Mobile spectrum. The sale would take place either by means of private transactions or through upcoming auctions that will be hosted by the Federal Communications Commission (FCC).

During October, a deal was entered into with U.S. Cellular, whereby 10 MHz of additional T-Mobile spectrum was acquired at a cost of just over $300 million in cash. The acquisition of additional T-Mobile spectrum would mean that approximately 32 million customers in 29 cellular communications markets would be able to benefit from having additional as well as better quality network and signal coverage.