To make the United States a leader in 5G technology, Trump administration has to approve the merger deal between T-Mobile and Sprint, analyst Jonathan Chaplin told CNBC on Friday.
The two wireless companies last year struck a merger deal of worth $26.5 billion, which is still pending to be approved by the federal regulators.
If the administration considers it to be the first in 5G technology and to have a stronger infrastructure in the United States than China, Korea and Japan as matter really important, then it has to allow the merger deal to go through, Chaplin said on “The Exchange. ”
It is way to have best 5G network in the United States which the country has expecting and it will push the AT&T and Verizon to make further investments in the technology, as Sprint owns an extraordinary band of spectrum which can run the 5G technology, he said.
Sprint is in possession of mid-band spectrum that can work almost everywhere, with an exception of most of the rural areas of Montana where it may not be doing great but other than those areas, it will be working well, whereas AT&T and Verizon are having high-frequency spectrums that work better in the denser areas of big cities but are not so efficient in the areas outside of those populated areas, said Chaplin, who leads the U.S. communications services research team at New Street Research.
The only hurdling factor which Sprint has been facing to deploy its spectrum band is lack of funds, and in case the deal remain successful to get the administration’s approval, then the these companies would be gaining a unique position in the market, and in the case otherwise, the 5G spectrum would remain under wraps for the next five years, he added.
Federal Communications Commission on Friday unveiled its intentions of starting third 5G spectrum auctions on Dec 10.