Sprint doubled its network capex year-over-year up to $1.3 billion in the second quarter of its 2018 fiscal year as it increased the capacity of its network while still cutting costs by $100 million year over year, according to company officials in a Seeking Alpha transcript.
Sprint is in the middle of a two-to-three year burst of capex spend to cover the deployment of 2.5 GHz and nextgen technology. By improving its network, Sprint hopes to lower its churn, which is one of the highest in the industry, according to Michel Combes, Sprint CEO.
“So, with these 2.5 GHz deployments, what I expect the most is that it will help us to close the gap from a churn point of view and then our net adds profile should be much better,” Combes said. “Thanks to all of the investment we have done, we have been able to provide LTE Advanced on a nationwide basis.”
Sprint completed thousands of tri-band (850MHz / 1.9 GHz / 2.5GHz) upgrades during the quarter and now has 2.5 GHz spectrum deployed on 70 percent of its macro sites up from 50 percent year over year. Adding thousands of outdoor small cells, the carrier now has deployed 21,000 mini macros and strand mounts. Additionally, it continued commercial deployment of Massive MIMO radios, which increase the speed and capacity of the LTE network.
T-Mobile Rolls Out 600 MHz at ‘Furious’ Pace, Preps for 5G
Driven by the 600 MHz rollout, T-Mobile’s spent $1.4 billion on capex in the third quarter, with full year capex numbers expected at the high end of the carrier’s guidance range of $4.9 billion to $5.3 billion. As a result, so far, T-Mobile has deployed 600 MHz in 1,500 cities across 37 states, including Puerto Rico, or 291 million pops, according to John Legere, T-Mobile CEO in a Seeking Alpha transcript.
“We continue to expand coverage with industry leading performance,” Legere said. “We continue to aggressively roll out low-band spectrum, with our 700 MHz deployment virtually complete and our 600 MHz deployment continuing at a furious pace.”
All of the 600 MHz network hardware that T-Mobile is deploying is upgradeable to 5G with a software update. Plus, it plans to have global standards-based 5G equipment deployed in six of the top 10 markets, including New York and Los Angeles, by the end of the year so that the network will be ready for the introduction of the 5G smartphones in 2019, according to Legere.
“We plan on the delivery of a nationwide 5G network in 2020 and we’re building 5G with global standards-based equipment, the true 5G. And through our pending merger with Sprint, we will be able to deliver a 5G performance capability well beyond what either company can deliver on a standalone basis,” Legere said. “I mean, obviously, we are incredibly focused on the combination with Sprint and the 5G opportunity. We can deliver through that combination is unique. It’s incredibly compelling. It’s going to bring a level of 5G capability and service to the U.S. market that nobody can do on their own.”