T-Mobile Getting Up to Speed With 3G

The cell-phone operator expects to have its new 3G network up and running in more than 120 cities by the end of November.
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For the longest time, T-Mobile USA (DT) - Get Report was at a major disadvantage compared with its competitors. It didn't have a 3G network to compete with Verizon (VZ) - Get Report, Sprint (S) - Get Report or AT&T (T) - Get Report. But, its fortunes are changing rapidly. Within the next few weeks, the nation's fourth largest cell-phone operator says it'll have its new 3G HSPA network up and running in more than 120 cities by the end of November.

T-Mobile previously lagged behind the big three operators because it lacked the "bandwidth" (frequency space) and proper licenses to roll out a next-generation data network.

But, two years ago, T-Mobile fixed that problem. In government auctions, it spent more than $4 billion for 120 Advanced Wireless Services licenses for new frequencies. Since then it's spent an additional $2.6 billion on upgrading its network to 3G status.

By the end of last week, T-Mobile USA had deployed new 3G, WCDMA/HSPA systems in 92 major cities. It promises to add another three cities by Wednesday, which just happens to be the day its

G1

, the first Android-based

Google

(GOOG) - Get Report

phone, officially goes on sale nationwide. The new 3G network is said to deliver data download speeds of up to 1 megabit per second.

var config = new Array(); config<BRACKET>"videoId"</BRACKET> = 1863414179; config<BRACKET>"playerTag"</BRACKET> = "TSCM Embedded Video Player"; config<BRACKET>"autoStart"</BRACKET> = false; config<BRACKET>"preloadBackColor"</BRACKET> = "#FFFFFF"; config<BRACKET>"useOverlayMenu"</BRACKET> = "false"; config<BRACKET>"width"</BRACKET> = 265; config<BRACKET>"height"</BRACKET> = 255; config<BRACKET>"playerId"</BRACKET> = 1243645856; createExperience(config, 8);

(

Photo gallery: Google's T-Mobile G1 Phone

)

T-Mobile now says this network will be deployed in more than 120 major cities and some surrounding areas by the end of November. Not bad for a company that had predicted it could have the service in 27 cities by the end of the year.

What this all means is that T-Mobile is catching up to the other majors. According to today's

GSMA Newsletter

, a recent edition of

Wireless Intelligence Snapshot

forecasts that the operator's 3G connections base will surpass 1 million before year-end and reach almost 5 million by the end of 2009. That could account for between 10% and 15% of T-Mobile USA's total wireless connections.

Gary Krakow is TheStreet.com's senior technology correspondent.