T-Mobile and Verizon are both offering to replace old, damaged phones with new 5G models. The two companies have paid for new C-brand frequencies, a highly desirable spectrum for 5G that offers good range and speed.
Verizon and T-Mobile reassured their shareholders that the hefty expenditure would help grow its customer base and increase the amount of money that it makes on existing accounts.
Verizon and T-Mobile's 5G Push
The two companies told investors at its March analyst event that the C-band included step-ups to premium plans. However, the cracked phone deal requires a commitment to a select unlimited plan, according to The Verge.
T-Mobile in particular, wants to make the most of a very strong hand right now. It has taken every chance to declare itself the leader in 5G and is likewise focused on reaching new customers, getting a 5G device in their hands, and getting them hooked on its 5G network.
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Mike Sievert, the CEO of T-Mobile, talked about the success of the Magenta Max plan, which is an unlimited plan that does not impose slowdowns after users reach a certain monthly data threshold, according to Fortune.
Users on the plan use 70% more data than a typical LTE customer, and Sievert said that they are using their 5G data connection in situations when they might otherwise have looked for a public Wi-Fi network to join.
Sievert said that when people are given a truly unlimited plan on a 5G phone that is fast on the biggest and best 5G network, they will buy it. The free 5G phone is just the beginning of what the carrier hopes will be a long and lucrative relationship.
5G Distribution in the US
Outside of the two companies, U.S. wireless carriers are braced for massive changes this year, the impact of which will be felt by the rest of the country.
The start of the year saw telecom companies on the upswing compared to last year's tumultuous first quarter, with most adding more customers than they did in this quarter in 2020, according to ZDNet.
T-Mobile gained 773,000 postpaid phone customers, and AT&T added 595,000, its highest number in 10 years.
Across the industry, companies felt the positive impacts of retail stores reopening with customers using stimulus checks to spend.
While they are in a better spot than they were when the country started shutting down last year, there are a lot of hurdles to overcome in the near future.
Verizon and AT&T, in particular, have a major project ahead of them in getting ready to deploy that newly won C-band, a very costly venture on top of what they owe the federal government for the licenses.
C-band is particularly important to those two companies. which are gambling on it to breathe life into their struggling nationwide 5G networks.
Meanwhile, Verizon is wasting no time, has pledged to spend $10 billion over the next three years on C-band deployment. It is on track to spend between $2 and $3 billion by the end of the year. Verizon has already ordered half of the equipment it will need.
As for AT&T, the company is being more cautious, citing uncertainties around global supply chains affected by the pandemic.
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Written by Sophie Webster
