T-Mobile USA preparing for expansion

Looks like we will still get those sexy Catherine Zeta-Jones commercials for another year. Rumors were floating around that T-Mobile International was looking to sell T-Mobile USA because of the expense of upgrading to 3G. This rumor has been dispelled by an announcement from the parent company. Several billion dollars have been earmarked for the expansion of T-Mobile USA.

Analysts predict that this money will be used to be an aggressive presence in a 3G spectrum auction this summer. They also anticipate the company taking over one or more regional carriers. T-Mobile USA is currently much smaller than its major competitors.

Since the company clearly needs to compensate for a major lack of a 3G network, some insiders expect the company to make a big push in the WiFi field during 2006. The company runs a number a large number of WiFi hotspots nationwide, so this scenario could be viable.