T-Mobile Involved in 4G Network Negotiations

Filed in archive Mobile Technologies on May 5, 2010

It's no big surprise to hear that 4G networks are the proposed wave of the wireless future but what is interesting is that not all of the major players have their proverbial ducks in a row yet.

T-Mobile, for example, has been in early-stage talks with Harbinger Capital, a hedge fund that owns radio spectrum, about the possibility of forming a partnership to lease the investment firm's fourth-generation network.

Harbinger Capital unveiled plans to build a 4G network, covering much of the U.S. in high-speed service using a combination of 36,000 traditional cell sites and satellite technology from its large stakes in companies like Inmarsat, SkyTerra and Terrestar.

Harbinger's plan isn't to offer service to consumers directly, but instead to lease its 4G network out to wireless providers (hence T-Mobile's interest).

Should a partnership be formed, T-Mobile could use its more than 50,000 sites to save Harbinger an estimated $4 billion in new tower construction costs in exchange for favorable 4G leasing terms.