T-Mobile CEO John Legere is making contingency plans in case a long-rumored takeover offer from Sprint falls through, The Post has learned.
The nation’s fourth-largest wireless carrier is offering to buy valuable spectrum from smaller rivals even though Legere might have to resell some of those same airwaves if a merger with Sprint passes regulatory muster, said a source familiar with the situation.
“Buying spectrum would add to the potential divestitures resulting from the combination,” the source said.
Nevertheless, T-Mobile has delivered proposals to several carriers offering to buy their so-called low-band spectrum — the key to urban markets like New York City because it penetrates buildings better than the high-band variety.
In April, T-Mobile completed a $3.3 billion purchase of low-band spectrum from Verizon. Before then, T-Mobile was the only major wireless provider without such spectrum.
The swath of 700 megahertz A-band spectrum covers about half the country, and T-Mobile could start filling in the rest of its footprint, sources said. Most of the other 700 MHz A-band spectrum is spread among about 30 smaller carriers, including US Cellular and Paul Allen’s Vulcan.
“It could be trying to push for this spectrum now before reaching the Sprint deal,” the source said.
Sprint parent SoftBank is expected to make a formal bid for T-Mobile in July or August and reportedly has agreed to a $2 billion breakup fee if antitrust regulators nix the combo.
T-Mobile has been at a huge competitive disadvantage not owning low-band spectrum and needs to act independently as if there were not going to be a merger, said one source.
A T-Mobile spokesman declined comment.