T-Mobile has until early 2026 to meet an FCC performance test or it will have to return its spectrum license.

According to Atkin, T-Mobile is the "most active" U.S. carrier regarding spectrum use. The company is working to meet FCC mandates tied to the 3.45GHz spectrum licenses acquired in FCC Auction 110. In 2022, the carrier spent around $3 billion for 21MHz of airwaves in that auction. The FCC has placed "use-it-or-lose-it" conditions on the spectrum, requiring T-Mobile to meet certain goals by March 2026.

By March 2026, T-Mobile must prove to the FCC that it's using the 3.45GHz spectrum to cover at least 45% of the population within each license area. This rises to 75% by March 2029. Failure to meet the 2026 target for a license could result in the FCC reclaiming that license and re-auctioning it.

Atkin stated that T-Mobile is using colocations and amendments to meet its goals. Colocation involves renting space on existing towers owned by other parties for cellular equipment, such as antennas and base stations. This is faster and cheaper than building new towers.

Atkin said that Verizon is concentrating on mid-band spectrum capacity and coverage. Verizon has also initiated a program to lower lease costs through relocation. With American Tower as its primary landlord and the master lease nearing expiration, Verizon is expected to seek lower-priced tower leases.

According to the RBC Capital analyst, AT&T is on track with its network modernization plan, replacing Nokia equipment with Ericsson gear.

T-Mobile has faced accusations from Verizon and AT&T of hoarding spectrum. In 2023, AT&T claimed T-Mobile was acquiring unneeded airwaves to block competitors like AT&T and Dish, who suggested the FCC should limit spectrum acquisitions. The accusations concerned the 2.5 GHz mid-band spectrum.

T-Mobile deployed 2.5GHz airwaves obtained from the Sprint acquisition to start its 5G network, differing from Verizon and AT&T's initial focus on mmWave spectrum. While faster, the shorter range of mmWave spectrum limited coverage and slowed their 5G deployment. T-Mobile's use of the 2.5GHz spectrum helped it become an early 5G leader in the U.S.

Verizon and AT&T later spent over $68 billion in an FCC auction to secure C-band spectrum licenses in the mid-band, correcting their initial strategy and challenging T-Mobile.

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