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Over Thanksgiving week, T-Mobile quietly launched an upgraded version of its LTE network in Dallas. This network is capable of speeds beyond what most current LTE devices are capable of. With this deployment, T-Mobile is demonstrating its intent to deploy the fastest and largest capacity network it possibly can.
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From the very beginning, T-Mobile’s approach to LTE was a story of repurposing already-used spectrum. When the deal for AT&T to acquire T-Mobile failed in 2011, T-Mobile received a package of AWS spectrum that enabled T-Mobile to deploy LTE while retaining its UMTS HSPA+ operations on AWS too. Prior to that, T-Mobile would have to shut down its HSPA+ network on AWS if it wanted to deploy LTE on AWS.
Late last year, T-Mobile announced that it intended to acquire MetroPCS, and completed the acquisition on May 1. Shortly after, T-Mobile expanded MetroPCS to 15 more markets, and again 15 more a few weeks ago. In these markets and the original 15 markets, T-Mobile has replaced MetroPCS’ lineup of CDMA/LTE devices entirely with GSM/HSPA+/LTE ones that rely on the T-Mobile network.
As part of the shift to GSM/HSPA+/LTE for MetroPCS, T-Mobile shut down the MetroPCS LTE network, reshuffled spectrum allocations for GSM, HSPA+, CDMA, and LTE, and relaunched the LTE network with the combined spectrum of T-Mobile and MetroPCS. To fill in the gaps in areas not covered by MetroPCS spectrum, T-Mobile has been participating in spectrum license swaps and acquisitions to reach the goal of supporting the 20+20 MHz (40MHz) LTE carrier size. To enable this carrier size, T-Mobile must align its AWS spectrum assets such that it has a contiguous 20+20 MHz spectrum block in the band.
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T-Mobile has said that it will bring 40MHz LTE to 90% of the top 25 markets by the end of 2015, which means that 23 of the 25 most populous cities in the country will have it. These 40MHz LTE zones will support full Category 4 speeds, which top out at 150Mbps on the downlink and 51Mbps on the uplink. However, it appears that T-Mobile may not be able to fulfill that promise with the assets it has now.
MetroPCS CDMA markets
Of the original 14 MetroPCS markets, 10 are in the top 25. These markets are:
- New York City, NY
- Los Angeles, CA
- Philadelphia, PA
- Detroit, MI
- Boston, MA
- San Francisco, CA
- Dallas, TX
- Miami, FL
- Atlanta, GA
- Tampa, FL
New York City and Boston have enough spectrum to support 40MHz LTE and HSPA+ on AWS, as well as HSPA+ and GSM on PCS. However, MetroPCS has 10MHz allocated for CDMA2000 service on AWS currently, so these markets will not be able to utilize more than 30MHz for LTE. To move to 40MHz LTE, T-Mobile needs MetroPCS customers to abandon CDMA devices right away, so the spectrum can be repurposed.
In Philadelphia and Miami, there is no way to have 40MHz LTE with the current spectrum holdings that T-Mobile has. Spectrum acquisitions will be required to get that far. LTE-Advanced carrier aggregation with another band is another option, but the performance from carrier aggregation is slightly worse than just using a larger single carrier. This is because there is a greater portion of the spectrum being used for carrier overhead when aggregating separate blocks of spectrum. It’ll be close, but not quite the same.
T-Mobile and MetroPCS bandwidth allocations in Dallas
In the remaining MetroPCS markets, T-Mobile can move to 40MHz LTE now and retain HSPA+, CDMA2000, and GSM. Dallas is one such market where it has already started showing up, with around 100 sites in north Dallas reconfigured to offer 40MHz LTE, according to T-Mobile COO Jim Alling at the UBS Global Media and Communications Conference on Wednesday. 40MHz LTE coverage will continue to grow in Dallas and appear in other markets as T-Mobile prepares the network for it.
T-Mobile GSM markets
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The remaining 15 markets are T-Mobile GSM/UMTS/LTE only markets, and they are:
- Chicago, IL
- Washington, DC
- Houston, TX
- St. Louis, MO
- Pittsburgh, PA
- Baltimore, MD
- Minneapolis, MN
- Cleveland, OH
- San Diego, CA
- Denver, CO
- Seattle, WA
- Milwaukee, WI
- Cincinnati, OH
- Kansas City, KS-MO
- Buffalo, NY
Chicago, DC, St. Louis, Pittsburgh, Baltimore, Milwaukee, Cincinnati, and Kansas City cannot support 40MHz LTE with the current spectrum holdings. Some of these markets are are so starved (like Cincinnati), that AWS HSPA+ has to be removed to offer AWS LTE. Given the large legacy base of devices that support only AWS HSPA+, AWS HSPA+ cannot be decommissioned just yet, so either more AWS spectrum is needed for LTE or LTE needs to be deployed on another band.
Houston, Minneapolis, Cleveland, San Diego, and Buffalo have enough spectrum to support 40MHz LTE with the current spectrum holdings. However, these markets will be limited to 30MHz LTE for some time because T-Mobile needs to support older HSPA+ devices that support only the AWS band. As T-Mobile subscribers adopt newer devices that support PCS and AWS for HSPA+, the necessity for AWS HSPA+ weakens.
Denver is in the strange situation of having enough AWS spectrum, but it isn’t lined up to be usable for 40MHz LTE. T-Mobile needs to swap one of its AWS licenses for Verizon Wireless’ AWS license to enable 40MHz LTE. Even after the swap, it will be in the situation that other 40MHz AWS markets are in, for the time being.
In Seattle, T-Mobile can move to 40MHz LTE now and retain HSPA+ and GSM.
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T-Mobile has a longer way to go for 90% of the top 25 markets
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Contrary to the company’s claims, it does not appear to be so easy for T-Mobile to enable 40MHz LTE in 90% of the top 25 markets — 50% is more like it. However, spectrum holdings do not remain static. Carriers always try to get the largest contiguous chunk of any band they will utilize in order to maximize the capacity and speed benefits of using the spectrum. T-Mobile will certainly try to work out deals throughout 2014 to realign its assets to enable those larger channels.
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T-Mobile also has the opportunity to pick up more AWS spectrum in the AWS-3 spectrum auction, which will involve spectrum sharing as a way to make it more immediately usable. The auction is expected to take place late next year, and T-Mobile will can use the opportunity to enable 40MHz LTE in markets where it may not be possible in any other way.
However, over 65% of the top 25 markets are capable of 15+15 MHz (30MHz) LTE on AWS now, which still offers substantially higher performance and capacity over the LTE networks of its competitors (who use 5+5 MHz or 10+10 MHz LTE carrier sizes for their LTE networks). Downlink speeds near 100Mbps should still be possible with Category 4 LTE devices on 30MHz LTE. More importantly, this high performance network would be compatible with every single AT&T and T-Mobile LTE device that has been offered, as well as the few AWS LTE devices offered by Verizon Wireless.
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Now read: What is LTE?