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T-Mobile is Spending $3.5 Billion on New 5G Network Gear

Women Using LaptopToday T-Mobile announced a deal with Nokia for $3.5 billion worth of 5G network gear according to Reuters. T-Mobile said this deal was part of their efforts to be the first with a nationwide 5G service in the United States.

A few weeks ago T-Mobile’s CEO John Legere laid out his plans for 5G home internet. The main point being it is T-Mobile’s plan to become the fourth largest home internet service provider (ISP) over the next 5 years.“The combined company’s 5G network will deliver mobile broadband speeds in excess of 100 Mbps to roughly two-thirds of the population in just a few years and 90% of the country by 2024. This is a mobile connection so fast, millions will be able to cut the cord with Comcast, Charter and the rest. We’ll offer both in-home broadband services and mobile broadband, so customers can pocket the savings from eliminating that pricey wired in-home broadband bill every month if they choose,” T-Mobile CEO John Legere wrote in a blog post.

The real interesting announcement in the blog post was a plan to bundle home internet and wireless phone service. “Consumers who choose to cut the in-home wired broadband cord and utilize New T-Mobile’s 5G mobile wireless service to meet their in-home broadband needs will see the most savings. By way of example, today such a consumer might pay $80 per month for their wired in-home broadband service and $60 per month for mobile wireless service, for a total of $140 per month. Once New T-Mobile deploys its broad and deep nationwide 5G network that will deliver service approximating or exceeding the speed and quality of wired broadband offerings, this same consumer may find it desirable to terminate his or her wired broadband subscription and rely exclusively on New T-Mobile’s 5G mobile offering. That consumer would now pay only $60 per month for equivalent services that previously cost $140—pocketing an $80 savings every month.”

With these bundles, the idea of phone internet would radically change. No longer would it be tied to a physical location. Your 5G hotspot/router could be taken with you camping, on vacation, or to your hotel room. No longer will your great high speed internet be tied to a single location.

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